Other factors

Personal Financial Planning gives you a framework and a plan of action to move towards relative financial freedom. Apart from allocating funds to meet various objectives, what else can you do to fortify yourself against life’s challenges? Here’s a checklist.
  • Know your possible needs such as vehicle purchases, child’s education, family functions, vacations, etc. It prompts you to put aside some money for these requirements.
  • Ensure you have a passport, an income tax PAN card, a driving license, and an election identity card, if you are an Indian citizen. These four basic documents help establish your citizenship.
  • Obtain an Overseas Citizen of India (OCI) card or a Person of Indian Origin (PIO) card, if you are an Indian citizen who has migrated or obtained foreign citizenship.
  • Place all investments, bank accounts, insurance policies, etc., in joint names or with nominations registered.  Register real estate in joint names too. Joint holding is always stronger than a nomination.  A nomination is only a right to receive and hold in trust, until the property is finally settled as per a will or operation of law.  A joint holding on the other hand immediately confers a fifty per cent ownership right, in case the only other holder is no more.
  • Undertake succession and estate planning. It’s good to have a sound knowledge of what will happen to your assets if you are suddenly not around.
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Why undertake succession and estate planning?

In India, there are different laws of succession for different communities.

  •  Hindus – the Hindu Succession Act
  •  Muslims – the Mohammedan Succession Act
  •  Most others – the Indian Succession Act

These laws govern how assets are devolved after the death of the owner, if there is no will.