Succession plan: Should you make a will or set up a trust?

The story of heirs fighting over property has helped many scriptwriters pen Bollywood potboilers. Such stories are common, despite the fact that no one wants to see their heirs fighting or wants their wealth in the wrong hands. Therefore, there are two pertinent questions: do you need to set up a succession plan? And if yes, what is the best way to do so?

Sonali Pradhan, managing director-head of wealth planning at Royal Bank of Scotland, believes that people with investments of more than Rs 1 lakh in securities should have a wealth plan. She adds that in its absence, their heirs may require a succession certificate or a legal heir certificate to inherit such securities.

A succession certificate is a document issued by a civil court to the legal heirs of a deceased person. It establishes the authenticity of successors who inherit securities and other assets as well as the debt.

She adds that although the simplest way of transferring wealth is by way of joint ownership, it may not be the best option. We explain all possible way to distribute your wealth and their pros and cons to help you decide better.

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