How do I determine if I want property or succession planning?
I’m retired and need to begin succession planning for my youngsters. Towards that finish, I need to perceive the distinction between property planning and succession planning.
—Name withheld on request
Technically, property planning and succession planning are completely different. However, relying upon the target of the particular person endeavor this train, these could overlap.
Estate planning is carried out through the lifetime of the particular person, with a view to streamline asset holdings and companies, whereas succession planning is extra about who will inherit the belongings or companies.
Typically, if an individual owns a number of belongings or companies, then the correct strategy could be to mix the property and succession planning to make sure seamlessness through the particular person’s lifetime and submit demise.
Since your goal is to undertake planning to your descendants, you’d be taking a look at succession planning to make sure all of your belongings are divided amongst your descendants within the method that you simply want submit your demise.
My dad and mom died of Covid and not ready any will. My siblings and I are their solely authorized heirs. We are not looking for an equal share in all their properties however favor to distribute it as per our mutual understanding. How can we legally do this?
—Name withheld on request
In accordance with the Indian Succession Act, if an individual dies intestate then the property is split equally amongst his / her heirs. If you and your siblings are the one authorized heirs, you’ll inherit an equal share in all of the properties. However, if you wish to distribute the properties amongst yourselves, then you possibly can contemplate getting into right into a household association beneath which you’ll report the re-alignment of possession of the properties.
With the household association, you possibly can contemplate getting into into and registering ‘gift deeds’ or such different paperwork for every of the properties whereby, the opposite siblings will present their share within the related property in favour of the one that is entitled to the identical as per your mutual understanding. By execution / registration of the aforementioned paperwork, you and your siblings can then take care of the properties which have come to your respective shares as chances are you’ll deem match. However, please word that every one the heirs of the deceased individuals ought to execute the association and the paperwork to keep away from any litigation / dispute in future.
Hemang Parekh is associate and Mitali Naik is affiliate associate, at DSK Legal
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