Page 222 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Tanima Dutta, Lovely Professional University
Unit 12: Estate Planning

Unit 12: Estate Planning Notes

CONTENTS
Objectives
Introduction

12.1 Meaning of Estate
12.2 Need of Estate Planning
12.3 Objectives of Estate Planning

12.4 Steps in the Estate Planning Process
12.5 Tools of Estate Planning
12.5.1 Tools used during the Lifetime of an Individual
12.5.2 Tools used after the Death of an Individual
12.6 Risks and Drawbacks involved in Estate Planning

12.7 Will
12.8 Summary
12.9 Keywords

12.10 Review Questions
12.11 Further Readings

Objectives

After studying this unit, you will be able to:
Know the need and importance of estate planning in India;

Learn the various strategies for proper estate planning;
Understand the significance of Will creation;
Discuss various formats of Will creation.

Introduction

Estate planning is a very important part of personal financial planning. Writing of Will is a very
important aspect of one’s financial life so as to ensure that the wealth is transferred easily to the
next generation. Often people take help of their financial advisors to help them make a will that
can distribute their assets to their heirs in a smooth manner.
This unit will explain you the importance of making wills and powers of attorney.

12.1 Meaning of Estate

An estate is the total of all personal and real property owned by an individual. Real property is
real estate and personal property is everything else such as cars, household items, shares, units,
and bank accounts.

LOVELY PROFESSIONAL UNIVERSITY 217