LEGACY PLANNING IN FINANCE !!!

They often use the word, legacy, for something handed down from one generation to the next. Legacy planning is a crucial financial strategy that allows individuals to prepare for the transfer of their assets to loved ones or beneficiaries after their passing. "Paise ki Boli sab bolte hai", even an illiterate fellow understands the language of money!!! For everybody, the FINANCE MATTERS and hence today we will go through the legacy issues related to personal finance in brief.

Legacy planning is a crucial financial strategy that allows individuals to prepare for the transfer of their assets to loved ones or beneficiaries after their passing. Legacy planning isn’t just about money; it’s about passing on your values, dreams, and aspirations. what legacy we can pass-on to the next generation and how? Goodwill, property or monetary instruments which differs from person-to-person basis.

Goodwill generally is passed on easily and person has generally made provisions. Brand name can be transferred, Succession plan is generally in place for the businesses. Though intangible, but goodwill possesses high value. 

For individuals with assets like small businesses, farms, or other properties that require ongoing maintenance, legacy planning offers valuable protection. Property has complications with regards to the legacy issues. Property can be transferred from one generation to other by inheritance or by Will. Inheritance is a tricky subject and is dealt with differently. when there are more than one claimants, the legacy issues become legal issues.

Monetary instruments can be any instrument which has some monetary value like FDRs, Mutual funds investments, bonds, insurance policies. These instruments are easily transferable by means of nomination facility. So be it FDRs/mutual funds or insurance and for that even SB accounts, kindly make sure you have opted for nomination facility. 

Legacy issues in finance can easily get converted into legal issues if not dealt properly. A person spends a lot of time in planning building his wealth and in India it comes naturally to hide the finances from wife/kids. This becomes biggest blunder in untimely death of break earner of the family. When you have not shared the details of your belongings with the family, it becomes nightmare for them to find out about it and claiming it. One book covers this issue in detail by Monika Halan Madam which covers everything one needs about legacy issues in finance.

You should keep details of your investments/belongings kept with a friend or a relative who can help your near and dear ones with the details ready. 

Kindly make sure you consult your financial advisor before taking any decision about finances as FINANCE MATTERS and it matters for everyone😇.

- Sachin Goswami