What is Succession/Estate Planning?
First thing that comes to mind is “What comprises my Estate”. In layman terms, Estate is your total net worth and includes your bank accounts, homes, cars and any other assets you may have to your name.
Estate planning essentially means what will happen with your assets once you are gone. One needs to figure out how to distribute his assets without encountering legal difficulties. Typically, parents leave most of their estate to their children, though you may also decide to leave parts of your estate to friends, nieces and nephews, siblings or charitable organizations.
Estate planning is a fairly normal part of middle age. However, when you have a child with special needs, estate planning process becomes more complicated. Hence, once you discover about your child, it is advisable to start this planning at the earliest.
Challenges Faced During Succession/Estate Planning
The biggest challenge here is that parents have to accept the fact that they won’t always be around their special child to help him/her. So, they need to plan – full proof & smart. Also, life is very fragile, so one needs to accept the challenges and start planning at the earliest.
Next big step is to identify all your assets & divide them amongst all your children (including special needs child) in a way that will feel fair to everyone including the lengthy and foolproof documentation to ensure that these assets go where you want them to go.
Indepth understanding and practical application of various Provisions of the Indian Income Tax Laws with respect to various saving and investments avenues available, how to make optimum use of these provisions to maximize your gains & investments growth and most importantly, understanding the various exemptions available with respect to a special needs child.