Sometimes to understand benefit of something it better to go the other end. To know what will happen if you do not do this. We go with this method to explain the benefits of estate planning.
|►||Avoid Family Squabbles||►||Distribution of wealth as desired|
|►||Legal Bottlenecks & Costs||►||State Succession Law takes over|
► Biases will always play a role; the needy may not get what you desired
► The distribution may be inadequate & heartburns with other family members
► If you are in business then controller or group of controllers of your business may divide in unfair shares.
► There is just no way for you to ensure a fair and desired level and type of distribution.
► Family will not get wealth without a probate process and this can take years.
► Probate entails high legal costs, family goes through hardship, stress & inconvenience. The same applies to succession certificate if an individual goes away without a Will.
► With a Will there may still be issues; civil court cases which may go on for years. You just cannot get what is yours easily.
► Will alone is not the answer; Estate Planning is the answer.
► In many cases part of the family may never get all the benefit.
► The person next in line may just not reveal everything to the family due to vested interests.
► Personality dynamics and interpersonal relationships also play a big role here.
► You cannot safeguard interest of minors if any.
► You have no control over special wishes that you may have desired to be carried out.
► Mismanagement of funds is a sure possibility too.
► Can you imagine a stranger as a guardian to your child. Care taker to your spouse & family.
► In many instances the state takes over and makes distribution as state deems fit or to state’s treasury if there is no beneficiary. This happens; consider an example – you make an investment and no one knows about it. When you are gone no one still knows about it. Who is going to claim this? After a good waiting period if there is no claimant the asset is transferred to the President of India. The state takes over. Think about claiming it from the state if you discover this later!