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Estate Planning
A simple way to invest in equity and create wealth
CONCERNS
Concerns Family vs. Business
Preservation of assets incase generation next is not as per expectations
Preserve assets and Reputation of Family
Bring Love/ Bonding / Togetherness in the Family
Business succession (Management & Ownership)
Sustainability of Family and Business till Perpetuity
Upkeep, education, marriage, etc of generation next
Fund growth without loosing control on my assets
In India
Judicial and legal framework not conducive for speedy resolution
Intergenerational transfers not planned systematically
Lack of uniform laws for geographically diverse assets
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WHAT IS ESTATE PLANNING?
Estate Estate Estate Estate planning planning planning planning deals with leaving your wealth back to your heirs.
Tools for Estate Planning Nominations, Will, Trust, Power of Attorneys
Estate Planning minimizes confusin and emotional strain on beneficiaries of
the estate
It ensures your assets are distributed in the manner you want to distribute
It helps to preserve your assets
It ensures minimum or no court involvement
It helps to protect your dependents
WHAT IS ESTATE
Your "estate" consists of all property owned by you at the time
of your death, including:
Real estate
Bank accounts
Stocks and other securities,
Life insurance policies,
Personal property such as automobiles, jewelry, and artwork
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TOOLS
Wills
A legal declaration of the intention of a testator
with respect to his property, which he desires to
be carried into effect after his death
Trusts
A Trust means vesting or placing property under
the control of a person in the confidence that he
will hold it for the benefit of a third person and/or
himself. Depending on the end objective, a trust
can be public, private or charitable
Family Council
A working governing body elected by the Family
among its members to deliberate on family and
Family business
STEPS OF ESTATE PLANNING
Family Information
Financial Information
Goal Setting
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STEPS OF ESTATE PLANNING
Legal and Tax Analysis..
Plan Recommendations..
Prepare Documents
STEPS OF ESTATE PLANNING
Review Documents
Execute Documents
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WILLS V/S TRUST
W
I
L
L


Comes in to existence post demise of the will
creator.
Way of passing ownership of wealth to Future
Generation. Invariably leads to fragmentation
Does not allow control of end use, monitoring etc.
Probate formalities are compulsory in almost all
cases
Contestability of Will is easy
Low Confidentiality Structure: Its becomes a public
document during probate
Can be revisited unlimited no of times, only last
tested will is accepted by court of law
Not a Bankruptcy Remote Structure
Cost of Will is lesser than Trust, Cost to probate a
will can be substantial
T


R


U


S


T


S
Vehicle to pass on the wealth in a
planned manner / over a period of time.
It provides for management of the estate
during ones lifetime & also provides for
distribution & management of wealth post
demise in a planned manner
Provides control for distribution and
monitoring
NIL probate required
Contestability is difficult
High Confidentiality Structure
Bankruptcy Remote structure: : If assets
are unencumbered
Cost more to prepare, fund and manage
but avoid cost and hassles of probating.
DIVERSE OBJECTIVES OF A FAMILY TRUST
Succession Planning: Preservation and growth of Family Succession Planning: Preservation and growth of Family Succession Planning: Preservation and growth of Family Succession Planning: Preservation and growth of Family
Wealth for future Generations Wealth for future Generations Wealth for future Generations Wealth for future Generations
Separate Business Assets from personal assets Separate Business Assets from personal assets Separate Business Assets from personal assets Separate Business Assets from personal assets
Bankruptcy Remote Bankruptcy Remote Bankruptcy Remote Bankruptcy Remote
Reduction in Administrative Hassles Reduction in Administrative Hassles Reduction in Administrative Hassles Reduction in Administrative Hassles
Ring fencing family wealth and leveraging Ring fencing family wealth and leveraging Ring fencing family wealth and leveraging Ring fencing family wealth and leveraging
Management of Wealth Management of Wealth Management of Wealth Management of Wealth - -- - Extremely Relevant for NRI for Extremely Relevant for NRI for Extremely Relevant for NRI for Extremely Relevant for NRI for
management of Indian Assets. management of Indian Assets. management of Indian Assets. management of Indian Assets.
Confidentiality of Financial Transactions Confidentiality of Financial Transactions Confidentiality of Financial Transactions Confidentiality of Financial Transactions
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TYPES OF TRUST
Public Trust
Members of an uncertain and fluctuating body and the
Trust itself is of a permanent nature and indefinite
character.
Private Trust
The beneficial interest is vested absolutely in one or more
individuals or beneficiaries who are ascertainable.
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TRUSTEE
Settlor, Family Members
TRUST TRUST TRUST TRUST
SETTLOR
(Lead Family Member)
BENEFECIARIES BENEFECIARIES BENEFECIARIES
Distribution of benefit as per trust deed
PROTECTOR
Cash Deposits,
Securities, Real estate,
loans, Investments,
INVESTMENT ADVISORS
(Individuals/ Holding Company)
PRIVATE
TRUST
SETTLOR
(Lead Family Member)
BENEFECIARIES BENEFECIARIES BENEFECIARIES
Draft Trust Deed
Define Trustees & Beneficiaries
Gift of Assets
Ownership & administer the trust
Achieve objectives as per trust deed.
Distribution of benefits as per trust deed
PROTECTOR
FAMILY TRUST
WHO NEEDS ESTATE PLANNING?
If you own anything or have people who rely on you it is a good idea to have
a plan. The more complicated your personal and financial affairs, the more
important it is. You should also review your estate plan at least once every
three years and whenever your circumstances change, such as:
getting married, living with a partner, separating or getting divorced
as soon as you have children or step-children
buying real estate or other valuable assets
buying, selling or operating a business
if you have family members with special needs or children who are
vulnerable
if you set up a family trust or company
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THANK YOU
For any further information, please contact: For any further information, please contact: For any further information, please contact: For any further information, please contact:
Mr. Gajendra Kothari, CFA, CAIA, ICFA Mr. Gajendra Kothari, CFA, CAIA, ICFA Mr. Gajendra Kothari, CFA, CAIA, ICFA Mr. Gajendra Kothari, CFA, CAIA, ICFA
M:+91 98678 24321
E: gajendra.kothari @eticawealth.com
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