As we age, it’s crucial to estimate our needs and take steps to reduce our belongings. Even if there’s a will and testamentary directive, the path to distribution of wealth after one’s lifetime can be complicated. An elderly couple wanted their wealth to support charities, but their will indicated that their wife would inherit everything if she survived him. However, the heirs pointed out that she had inherited the wealth from him as per the will, but there was no will specifying charity if she did not. The will included prime property worth several crores in Mumbai, and the heirs are unwilling to let go. Family courts hear thousands of property disputes, and intestate death, where there’s no will, complicates the process.
Estate planning decisions often stem from negative emotions such as secretiveness, suspicion, and hoarding. While wealthy individuals may have their share of caution, it is crucial to avoid making decisions based on denial and waste of wealth. Personal finance strategy should focus on providing for the known and an estimate of the unknown during one’s lifetime. As we age, it is essential to make a realistic estimate of what we may need and take steps to reduce our belongings, including property, gold, paintings, bonds, investments, clothes, and accessories. Downsizing is tough but necessary, especially for business, property, and physical assets.
Corporate assets often split among heirs, leading to a backlog of cases involving ancestral property. Careless practices like creating a maze of holdings and secretiveness about wealth access can lead to callousness.
End-of-life planning should be prioritized after retirement planning and before estate planning. Regularizing holdings, liquidating and reinvesting, and making informed decisions about healthcare, palliative care, and support are essential.
Embrace positive thinking and a generous mindset as you age.
The author is the Center for Investment Education and Learning’s Chairperson.
(Disclaimer: The author expresses her own ideas in this column. The information and viewpoints presented here do not represent those of Investcorpus.in.)
