Err. What type of question is this? You
must be wondering ‘am I out of my minds’ to ask such type of question. You read
it right but understood it wrong.
The question exactly means – “What if you
die today? Have you planned your ‘after-life’ for your family?”
Now this article is definitely not about
taking or investing in any insurance. Everyone who is financially literate to
some extent is aware about the importance of the need for insurance. The
attempt to write an article is far ahead than just insurance.
Few years ago, one of my clients passed
away at an early age in an accident. That was a deep grief for the family. I
have seen the after effects of the incident. After the demise, the father and
other dependent members of the family were in stress apart from the grief of
the loss of the person. The stress was of settlement of financial transactions.
The settlement included various types of
transactions like, bank accounts, fixed deposits, investment in shares and
securities, trade payables, loans taken and given and so on. Most of these were
rather not known to the family. The family has passed through so much of
hardships that can’t be exactly expressed in words. I have witnessed many such
cases apart from the above one.
Following are few things that should be
followed as a part of financial planning so that your after-life is not painful
for your family in financial matter. (Definitely, the pain of loss of the
person is inevitable.)
·
Keep
your insurance policies up-to-date. No matter what, but don’t skip the payment
of your insurance premium. You can compromise with any other luxury or need in
your life, but please don’t compromise with the insurance premium of the
policies taken.
·
Keep
the nomination status for all your financial assets updated. Transfer of any
financial asset with nomination registered is very simple and easy process as
compared to those where nomination is not registered. Nominations can be
registered for all financial assets including bank accounts, fixed and
recurring deposits, bank lockers, shares (demat accounts), mutual funds, bonds
and securities, insurance policies, etc.
·
Keep
a list of advances given and advance taken even on personal basis. Failing to
do this may result in heavy losses as in case lack of information about loans
advanced there is a very low possibility of the recovery of such advances.
·
Maintain
a list of all financial assets category wise that can be easily accessible in
your permanent absence. That will keep your family away from extra stress in an
hour already of grief.
·
Also
maintain a list of all immovable properties held by you, either singly or
jointly also accessible in your permanent absence.
·
Keep
all the financial instruments (in materialized form), property documents, other
key papers at one single and secure place.
·
Discuss
all major financial transactions and decisions with the key members in your
family. These can be parents, spouse, etc.
·
In
addition to above, it is highly recommended that you should prepare your will
so as to avoid any sort of dispute in your family in your after-life.
These tips are useful not just in your
after-life for your family, but also during your lifetime. These can help you
for an effective financial planning. All these are simple and easy steps that
can be taken to avoid any inconvenience and stress during time or after your
life.
Stay blessed.
CA. Amol G. Kabra, Latur
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