Inheritance refers to the transfer of properties and other assets of an individual to their legal heir in case of death or any eventuality. For married individuals, the process is simple, where the assets are transferred to the spouse and children. If you are single and think that estate planning is something that is not required, you may have to reconsider. Planning your inheritance is essential to prevent your assets from being transferred to unintended people. In this guide, we list the top reasons to plan for inheritance and share useful information on planning for it.
Why is planning for inheritance important?
Identifying legal heirs who will own your property is crucial when planning for the future. These individuals are the successors for property claims and insurance coverage. The Indian Succession Act 1925 applies for the transfer of property by Hindus through a will, while the Hindu Succession Act 1956/ 2005 applies for Hindus and Sikhs, Jains and Buddhists for succession without a will. There are different laws for Muslim and Christian families.
Proper planning for the inheritance of your assets is essential to protect your assets and prevent any property-related dispute.
Who is the legal heir if a person is single?
According to the Hindu Succession Act, if an unmarried person dies, their property will be distributed among their family members based on class-I and class-II legal heir specified under the law.
According to the Act, upon the death of an unmarried woman, her property will be distributed among her parents. Her father and mother can apply for a legal heir certificate.
See also: Who is an heir and what is inheritance?
How to plan for an inheritance?
Identify the legal heirs
Planning helps to designate heirs for your assets. One must identify the people to whom their assets would be transferred after death and mention them in their will. Without a will, passing on the assets to people you prefer would be difficult. It is important to note that in the absence of a will, the state may take possession of an individual’s assets.
Nominate your beneficiaries
Another crucial step in this process is adding beneficiaries when opening bank accounts. Such beneficiaries will take precedence over a will. Being single allows you to choose the people who will inherit your assets. You can choose any of your family members, friends or any charitable organisation. Check and update the beneficiary details on insurance policies, retirement accounts and other financial assets.
Determine the share for each heir
After identifying the heirs who would own your assets, you must also determine the share for each of the heirs. The individual assets must also be mentioned in the will.
Choosing a trust
Legal experts recommend that one must be cautious when immovable properties are bequeathed to a trust. One should ensure that the trust is competent to use the property as intended by the individual.
Name the Power of Attorney (POA)
The concept of Power of Attorney (POA) is mentioned under the Powers of Attorney Act 1882, and the Indian Stamp Act 1899. According to these laws, the POA is an instrument that empowers a specified individual to act on behalf of the individual executing the transaction. If a person is incapacitated, there should be a POA to take decisions on their behalf pertaining to finances and other matters.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected] |
Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
Related Posts
Woman who converted on religious grounds, goes to court for right to parental property.
Who is an heir and what is inheritance?.
Taxation on sale of inherited property.
Brother has no right on property inherited by married sister: SC.
Rights of a father to sell ancestral property.
Son-in-law has no right in his father-in-law’s property: Kerala HC.
