A succession planning helps to preserve the maximum amount of wealth possible for beneficiaries. It makes the asset sharing flexible and smooth for the individuals prior to his death of the deceased.Succession planning helps to protect the interests of throughout lifetime of a person and also after his or her death.
Benefits of Succession Planning:
- Harmonious succession and disposition of assets
- Protection of asset of a family keeping the family’s needs in mind
- Efficient management of asset during and beyond the lifetime of a person
- Preparing assets for unforeseen eventualities.
Here are the top three types of estate planning for distributing assets among his beneficiaries.
The family settlement is one of the most practical ways to resolve the succession dispute. With the coordination of all family members, a mutually acceptable solution is reached. Another way to resolve the family dispute is to find a lawyer to fight the case for judicial pronouncement.
Will and Life Interest
A will or testament is a legal declaration by which the testator provides for the distribution of his property at death. It is the most prevalent form of succession planning in respect of the self-acquired property. It is also a major safeguard for minor children and female members.
A life interest is an arrangement which ensures that any family member shall have the right to use the family property during his or her lifetime and thereafter, it will pass on to other legal heirs. It gives entitlement to enjoy the property during one’s lifetime.
Trust is used to make a fenced structure to ensure that the interest of a person’s future generations safeguarded. It can be revocable as well as irrevocable. A trust can also utilize a proportion of income for charitable purposes.