Fi­nan­cial plan­ning in­com­plete if you haven’t planned suc­ces­sion

Mint ST - - PERSONAL FINANCE - Ash­wini Ku­mar Sharma

Hav­ing a Will is very im­por­tant. We sug­gest all our clients to com­pul­so­rily go for a Will. There are three stages of fi­nan­cial plan­ning—pro­tect­ing your ex­ist­ing wealth, ac­cu­mu­lat­ing it and dis­tribut­ing it. If you miss any of these, your plan­ning will re­main in­com­plete.

Sup­pose I don’t take pro­tec­tion and don’t have a health in­sur­ance or life in­sur­ance, and straight­away start in­vest­ing. Then if I fall ill, what­ever I have ac­cu­mu­lated will get eroded. If I only pro­tect and ac­cu­mu­late, but don’t make a Will, then my fam­ily may end up in a dis­pute. Sim­i­larly, if I only pro­tect and don’t ac­cu­mu­late, what will I dis­trib­ute after re­tire­ment? So, all three are parts that are in­dis­pens­able, so if you are fol­low­ing fi­nan- cial plan­ning, Will is very im­por­tant.

Be­sides, from the trans­mis­sion per­spec­tive, re­mem­ber that your en­tire legacy has to go to some­body and what you want to en­sure is that the en­tire legacy with least leak­age should go to your loved ones. If a Will is not there, the plan­ner will earn some­thing, the lawyer will earn some­thing, and


Cer­ti­fied fi­nan­cial plan­ner

and founder, Gau­rav­

then there are gov­ern­ment levy and taxes and the fam­ily gets the re­main­ing. So to en­sure that there should be least leak­age, make a Will.

I would also sug­gest that one should in­volve a fi­nan­cial plan­ner while mak­ing a Will; lawyers know the law they can make bril­liant draft, but fi­nan­cial plan­ners know the char­ac­ter­is­tic of each as­set and the way they should be be­queathed.

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