A
Story Every Indian Family Should Hear - Estate Planning Basics
Meet Rajesh Mehta, a 48-year-old
self-employed interior designer from Pune. With a thriving practice, a
supportive wife, and two teenage children, life for Rajesh seems sorted. He
owns a modest flat, a studio space, some mutual fund investments, and a small
ancestral land parcel in Nashik. But a casual conversation with his CA, who was
also his financial advisor, at a Sunday brunch sparked a thought he hadn’t
considered seriously — What happens if something happens to me?
That’s when Rajesh began exploring Estate
Planning — not just about wealth, but about
responsibility.
1. The Will – Your Voice
Beyond Life
Rajesh started with a Will. A
Will is a legal declaration of how one’s assets should be distributed after
death. It's the cornerstone of estate planning. For Rajesh, it meant clarity —
who inherits the studio, who takes care of the ancestral land, how his bank
accounts and investments are divided.
In India, personal laws play a key
role in inheritance. For example, Hindu Succession Act governs Hindus, while
Muslims follow Shariat law. Rajesh, being Hindu, realised that without a Will,
his property would be divided among legal heirs per succession laws — possibly
contrary to his wishes.
Drafting a Will gave him peace — and
ensured his voice would be heard even in absence.
2. Guardianship Letter –
For Their Tomorrows
Rajesh’s next concern was his
children. His wife is a homemaker, and he wondered, If both of us were gone,
who would take care of my minor children? That’s where a Letter of Guardianship
came in — a document naming someone he trusts to raise his children.
Rajesh wrote a simple signed letter,
explaining why he chose his cousin as guardian — someone with similar values
and a deep bond with the children.
3. Power of Attorney –
When You Need a Helping Hand
Last year, Rajesh underwent a minor
surgery, during which he realised how helpless one can feel even temporarily.
That led him to execute a Power of Attorney (PoA) in favour of his wife
— empowering her to handle bank transactions and property matters in his
absence.
There are two main types: General
PoA, which is broad, and Specific PoA, limited to particular acts.
Rajesh chose a general PoA, with safeguards built in.
4. Trusts – Structured
Legacy Planning
His CA friend also informed Rajesh
about creating a Trust — not immediately, but in the future. Trusts are
useful when you want controlled disbursement of assets, say for a child with
special needs or to protect business assets from family disputes. In Rajesh’s case,
if he expanded his business further, a private family trust might help separate
personal and professional wealth effectively.
5. Taxes – Don’t Let the
Government Take a Bigger Slice
Lastly, Rajesh reviewed the tax
implications. India does not have an estate tax currently, but capital
gains, clubbing provisions, and GST on certain transfers (like property to a
trust) could still apply. Coordinating with his CA helped align his estate plan
with smart tax strategies.
To sum up, Rajesh’s story is not
unique — but his proactive approach is. Estate planning is not just for the
wealthy or elderly — it’s for anyone who loves their family and wants to reduce
future chaos. A little effort today can secure your family’s tomorrow.
Start like Rajesh did — with a simple
question: If I’m not around, will my family know what to do?
The content made available in this article is for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the content, it should not be considered as a substitute for professional consultation.
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