1. DEATH IS NOT THE END, THERE
REMAINS THE LITIGATION
OVER THE ESTATE.
Ambrose Bierce

2. PRESENTED TO: PRESENTED BY:
DR. MANISH SITLANI ANJALI PATEL
MANASI KELKAR
NIKITA AURORA

3. Objective of Estate Planning
 Explain the use of a will…
 Describe estate taxes…
 Explain the use of trusts, gifts, and
contributions…
 Introduce other aspects of estate planning…

4. ESTATE PLANNING
The act of planning for how your
wealth will be allocated on or
before your death is Estate
Planning.

5. ESTATE
An Estate represents a deceased person’s
assets after all debts are paid.
At the time of a person’s death, the estate is
distributed according to that person’s wishes.

6. WILL
A legal request for how your estate should be
distributed upon your death.
It can also identify a preferred guardian for
any surviving children.
In will, you can specify the beneficiary.

7. WILL
To create a valid will, minimum age is 18 or 21
One must also be mentally competent and
should not be subject to undue influence or
threats from other.

8. BENEFICIARY
Beneficiaries are also regarded as Heirs.
The person specified in a will to receive a part
in a estate of a person is beneficiary.

9. • Simple
TYPES OF
• Traditional Marital
WILLS Share Will

10. TYPES OF WILLS
Simple Will: A will that specifies the entire
estate be distributed to a person’s spouse.
Traditional Marital Share Will: A will
suitable for larger estate that distributes half of
the estate to the spouse and other half to any
children or trust.

11. KEY COMPONENTS OF A WILL
Executor
Guardian
Signature
Letter of last instruction

12. KEY COMPONENTS OF A WILL
 Executor/personal representative – The
person designated to execute the
instructions of the will regarding distribution
of assets.
 Guardian – Person assigned for caring of
children and managing any estate left to the
children.

13. KEY COMPONENTS OF A WILL
 Signature – Its needed to validate the will
and ensure that its not a fake will.
 Letter of last instruction – A supplement to
a will that can describe your preferences
regarding funeral arrangements and indicate
where you have stored any key financial
documents.

14. SAMPLE WILL
1. Introduction of family
2. Payment of debt and taxes
3. Distribution of the Estate
4. Trust for Children
5. Executor
6. Guardian
7. Power of Executor
8. Power of Trustee

15. FOCUS ON ETHICS
If the court determines that there is a fraud
or unethical behavior or some form of undue
influence on the creator of the will, it may
prevent the person who used fraudulent or
unethical behavior from receiving any
benefits.

16. CHANGING YOUR WILL
The will may be changed if the person :
 Move to a different state.
 Get married or divorced after creating the
will.
 The person wants to change it because of
any reason

17. CHANGING YOUR WILL
 The new will must specify that previous will was
revoked to avoid multiple wills with conflicting
instructions.
 For minor changes, a CODICIL can be added. This
document specifying changes in the will. These are
only minor revisions.

18. EXECUTING A WILL DURING PROBATE
 To adhere to the instructions of the will, probates
are formed.
 Probate is a legal process that declares a will valid
and ensures the orderly distribution of assets.

19. PROBATE PROCESS
 To start the probate process, the executor files
forms in a local probate court, provides copy of the
will, provides a list of the assets and debts of the
deceased person, pays debts and sells any assets
that need to be liquidated.
 Alternatively an attorney can be hired to complete
the process.

20. TRUSTS
Trust is a legal document in which one
person transfers assets to
another who manages them for
designated beneficiaries.

21. The two parties are:
Grantor
Parties
Trustee

22. TYPES OF TRUSTS
Testament
ary Living
Standard
Family
Revocable
Irrevocable Living
Living

23. LIVING TRUSTS
 Assigning the management of your assets to
a trustee while you are living.
 Managing the assets includes making
decisions on how to invest or spend cash in
terms of need.

24. REVOCABLE LIVING TRUST
 Dissolve or revoke the trust at any time you
being the legal owner.
 The two reasons:
To replace the trustee.
To manage the trust yourself.
 By using a revocable living trust probate
process is avoided but not the estate taxes.

25. IRREVOCABLE TRUST
 Living trust that cant be changed.
 Can provide income to the grantor but the
assets in the trust are no longer legally
yours.
 Not subject to estate taxes upon your death
as assets are not the part of your estate.

26. STANDARD FAMILY TRUST
 Also called Credit-Shelter trust.
 Established for children in a family.
 It is a type of testamentary trust.

27. TESTAMENTARY TRUST
 Trust created by wills.
 Not structured as a living trust but it can be
used to avoid estate taxes just as the
irrevocable trust.

28. GIFTS
 GIFTS is a tax free distribution of funds from one
person to another.
 Individuals receiving shares or jewelry, valuable
artifacts, valuable drawings, paintings or sculptures
or even property valued over Rs 50000 as gifts from
non relatives have to pay taxes.

29. CONTRIBUTIONS
CONTRIBUTION TO CHARITABLE
ORGANISATIONS:
Any money donated from an estate to a
charitable org is not subject to estate taxes.
Many individuals plan to leave donations for
charitable orgs regardless of the tax
implications.

30. OTHER ASPECTS OF ESTATE PLANNING
 Living will – a legal document in which
individuals specify their preferences if they
become mentally or physically disabled.
 EXAMPLE:-Not keeping an individual on a
life support when he falls ill to ensure that
his assets are used in the way that he or
she prefers.

31. OTHER ASPECTS OF ESTATE PLANNING
 Power of attorney – a legal document
granting a person the power to make
specific decisions for you in the event you
are incapable.
 EXAMPLE:- Naming a family member or a
close friend to make investment and
housing decisions if one falls ill.

32. OTHER ASPECTS OF ESTATE PLANNING
 Durable POA for health care – a legal
document granting a person the power to
make specific health care decisions for you.
 It works in the circumstances when the
situations is not covered by your living will.
 Necessary decisions will be made by
someone who knows your preferences

33. MAINTAINING ESTATE PLAN DOCUMENTS
 Estate planning information such as will, living will
and power of attorney.
 Life insurance and other insurance policies.
 Retirement account information.
 Home ownership and mortgage information.
 Ownership of other real estate.
 Personal property such as cars and jewelry.

34. MAINTAINING ESTATE PLAN DOCUMENTS
 Mortgage information
 Credit card debt information
 Ownership of businesses
 Personal legal documents
 Personal tax filing
 Bank account information
 Investment information

35. RISKS AND DRAWBACKS
 An individual's goals or wishes on how his
assets are to be distributed may not be
fulfilled.
 Huge costs of transfer and taxes.
 Time consuming legal procedures.

36. RISKS AND DRAWBACKS
 An individual's family may be in financial
distress if the process is not properly
planned.
 There may be insufficient liquidity to meet
client's debts and taxes.

37. INHERITENCE LAWS
According to FEMA Regulation 2000, a non-
resident who is a citizen of India can only
transfer properties to:
1. A resident of India
2. A citizen but not a resident
3. A non-resident of Indian origin

38. What Inheritance Laws apply in India?
No uniform codified laws apply. Different
religious groups subscribe to different laws.
 Hindus have their own codified law (Hindu Succession
Act) as well as a part uncodified.
 Muslims have their own Islamic Law on Succession.
 Parsees, Christians come under Indian Succession Act.

39. Taxation
No inheritance or gift tax is levied in India.
Recipient of assets is subject to wealth tax.
Net wealth tax is levied at 1% on a
taxpayer’s net assets if it exceeds INR3
million (US$60,599).
Income tax authorities are responsible for
assessing property value.

40. Financial
Planning tools
Retirement Liquidity
planning Management
Estate
Planning
Decisions
Investing Financing
Protecting your
assets and
income

41. A man may keep a woman, but not
his estate.
Samuel Richardson