Ravi is 38 years old, married and a father of two kids. Over the years, he has got life insurance, invested in PPF and purchased a few equity shares. He has also inherited some gold and a house. He has taken a home improvement loan and a personal loan for doing up his house. The residual intervals of the loans are 15 years and 14 months respectively. His financial advisor desires him to make a Will and set up a plan for his property, but he wonders if it is too early for all that.
Estate planning is generally related to death. Therefore, when and how that occurs is something that no one is in control of. All it may take is a deadly automobile twist of fate, a devastating fire, a shootout, a terrorist assault or a critical contamination together with cancer or coronary heart assault to kill a person. Despite the fact that one takes all the feasible precautions, there may be no manner to guarantee that one will now not lose his life to an unfortunate coincidence. Therefore, in this particular case, Ravi should begin property making plans now, regardless of his age and net worth.
It is a misconception that only the high net worth individuals requires estate planning. Generally, the lesser the wealth is, the more it is important for a family to make sure of how to access it. Ravi also has to make sure that his circle of relatives inherits all that he has left behind for them, instead of getting involved in any legacy issues in the courts.
Estate planning is very essential if one wants his survivors to get the finances properly after his death, even if that means to manage outstanding liabilities. In Ravi’s case, he may not require a will but can start with the listing of assets, completion of nominations and ensuring that his wife is a joint and co-owner of his asset and liabilities.
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