Estate Planning

Estate Planning (5)

Infosys share  price crashed yesterday  due to the resignation of their CEO  Mr. Vishal Sikka, the first non-founder CEO.He cited the interference of  Founder Mr. Narayan Murthy in his domain. But Mr Sikka reiterated his belief in the great potential of Infosys. The founders of Infosys  were known for good corporate governance but face a great challenge on succession planning going ahead.

 Business tycoon Mr Vijay pat Singhania,founder of Raymonds  has been entangled with his son Mr Gautam Singhania  on inheritance of his empire.He has already handed over his empire to his son but he has no money to meet his daily expenses.  It has a message for parents across the country; " Do not be  blinded on your retirement planning and be careful  in transferring your created your wealth to your children".

The period between 2002-2011 was a golden period for real estate investments. Now we have some data  to understand the current situation. The National Housing Bank (NHB), the regulator of housing finance companies have launched a revamped RESIDEX, a housing price index. The index claims to offer home prices of 50 cities across the nation.

This should help us get some idea about which way the real estate prices have gone over the last few years. And for the first time we should be able to calculate the actual city wise returns. Let's take a look at Table  below. It shows the annual returns of some selected cities between June 2013 and March 2017. It also shows the one-year return between March 2016 and March 2017.

Six months back, Praveen Hazare died in heart attack when he was 65 years old. He was staying in Thane with his spouse and two married sons. He had a flat in Mumbai and a flat in Navi Mumbai. He died without making a will. After his death, there were disputes for sharing of properties. The dispute has to be decided by the court as per the Succession Act which will take a very long time. This could have been avoided had he made a will.  

Akash is 14 years old, staying in Kharghar with his parents. He is in born differently-abled. He depends always on his mother for daily routines. His parents are spending around to Rs 20,000 per month on his treatment. They are worried for his future; what will happen to him if they are not there?

Like Akash’s parents, most are worried for their special children. The emotional support can be provided by the family but a permanent financial solution for the children during their life time is the biggest challenge in our society. During their life time, they can take care of their special child but who will take care him after them? 

Mr. Naren  is 45 years old and  staying with his family in Vashi. He is working in a textile company. He has a 2BHK  flat in Vashi, a 3 BHK flat in Pune and  2 acres land in Karjat.  Mr Naren has  made a Will to avoid future litigation between his children as a part of his estate planning. Initially he kept all his documents in bank lockers, for which he is paying locker charges of Rs 2500 pa. He finds it very inconvenient to visit the Bank every time to access to his documents. Further he has been told that he has to pay extra visits charge now. 

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