I am 64, retired from private sector. I have SCSS & FD of 57-L - SCSS maturing mid-2025. I had invested jointly most of my savings in MF-sector in 2017(@57) - which has grown thrice since. Since my wife's sudden demise (2019), I had been redeeming considerable amounts & topping-up both my son's portfolios, at intervals(though both are 50-50 nominees to all my portfolios). Kindly advice if the above process is better than making a will with details ? Do you have to register the will ? What is the procedure ?
Ans: Losing a spouse is not just emotionally challenging but can also impact your financial plans. Firstly, my sincere condolences for your loss. Your proactive approach in reassessing your financial strategy reflects wisdom and foresight.
Reviewing Current Strategies
You've opted for a hands-on approach, redirecting funds from mutual funds to support your son's portfolios. While this aids in wealth transfer and may provide comfort, it's essential to evaluate its long-term efficacy.
Comparing Strategies: Direct Support vs. Will
Direct Support:
Immediate assistance to beneficiaries.
Offers control and satisfaction in assisting loved ones directly.
Potential tax implications and estate distribution complexities.
Will Preparation:
Comprehensive documentation of wishes.
Facilitates smooth wealth transfer.
May involve legal costs and probate delays.
Advantages and Disadvantages
Direct Support:
Advantages: Provides immediate financial assistance, fosters family harmony.
Disadvantages: Potential tax consequences, lack of legal protection, unequal distribution risks.
Will Preparation:
Advantages: Ensures assets are distributed as per your wishes, minimizes family conflicts.
Disadvantages: Legal expenses, potential probate delays, lack of immediate support.
Recommendation
Considering your current approach, while supporting your son is commendable, it's prudent to complement it with a comprehensive will. A will ensures your entire estate is distributed according to your desires, minimizing confusion and potential disputes among beneficiaries.
Procedure for Will Preparation
Consult a Professional: Seek assistance from a legal expert or estate planner to draft a will tailored to your requirements.
Documentation: Gather all relevant information regarding your assets, liabilities, and beneficiaries.
Drafting: Work with the professional to outline your wishes clearly and comprehensively.
Review and Finalization: Carefully review the draft to ensure accuracy and alignment with your intentions.
Execution: Sign the will in the presence of witnesses as per legal requirements.
Storage: Store the will securely and inform trusted individuals of its location.
Conclusion
In conclusion, while your current approach of direct support to your son has its merits, complementing it with a will ensures comprehensive estate planning. This dual strategy provides immediate assistance while safeguarding your legacy and minimizing potential conflicts. Consultation with a certified financial planner and legal expert can further refine your strategy to align with your goals.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
