It’s fair to say that we are living in a new age of uncertainty with the COVID-19 pandemic. Concerns over the pandemic have ‘led to a skyrocketing demand for wills, even among those who aren’t senior citizens,’ according to an ABC News report.
None of us wants to imagine the worse future but now in current scenario it’s preferable to consider both positive and negative aspect and do proper estate planning. Normally when we mention estate planning it is considered as written will or getting will register but there are other option as well for estate planning. Let’s look into the two main methods of ESTATE PLANNING.
Before proceeding, let’s make estate planning clear to you all.
“Estate planning in simple terms refers to the passing assets / investments down from one generation to another. You decide how much of your estate – be it property(s), car(s), personal accolades, financial investments, etc. – you want to pass on to whom and how, after your demise.”
There are two methods of Estate Planning:-
As the name suggest Will meaning Wish. In legal terminology, will means a document that expresses the last wishes of a person. The person who created the will is known as a testator. A will contain a declaration of the testator, regarding the management and distribution of his personal estate. A will in Indian terminology is “VASIYAT” prepared generally by us, mentioning the ways of transfer of assets to the next generation, family members, spouse etc. The will comes to effect after the death of the proprietor.
A trust is defined as a legal arrangement, in which the trust owner authorizes a person called a trustee, to hold the asset, for the benefit of a third party called the beneficiary. It allows a person to nominate beneficiaries of his assets, before or after he passes away. There is no requirement of court interference in trust case and also it is created with intention of reduce tax liability.
Which estate planning method to choose?
It depends on certain criteria. Let’s get into it-