Disclosure : I am not law student, Please take advise of experts in the law before taking any decision about the inheritance or your property. Rules and laws may change nad may differ with each jurisdiction. Whatever I am writing here are my own views and study.
— Sanjay Pugalia (@sanjaypugalia) February 13, 2017
Why only politics and business, its always issue with the succession plan about your wealth. The reason is its your wealth. You are the owner of it and so you have the authority to decided, who will be owner. Let’s see it in details.There are some rules and regulation about it in some countries like prohibition or some other ways of tax on such property. But If I am not wrong, in big part of world, if you owned it then govt dont have any issues about it.
As this website having readership all over the world, I am trying to cover it in general. Laws may be different in your country or it may subject for changes. Different Religion have different views and I dont have any objection about it.
First of all what type of property one can acquire in life? It could be anything. Real estate, Live animals, A company set up by you or group of company, Jewelry, May be special type of Jem stone, Shares, bonds, debentures, Land, Tree plantation or any other type of collectibles. In fact nowadays, you can make will for your Social media account, Cloud storage also. So having one will is important factor.
Most of the time in many cases, If the died person makes some will which is making decision about property, then its not a matter over anyone can fight. The term may very as per jurisdiction. But nearly every Country, is giving the right to its public to decide what will happen to their property.
So why I am writing such blog post here?
There is a case about Inheritance, will with one of India’s richest family. Birlas.
Its about Priyamvada Birla. In 2004, after the death of Her, the will was open and everyone was shocked that Priyamvada Birla inherited her whole Property, with some important companies that time, total value around ₹5000 cr. To her accountant RM Lodha. In fact in one of her will she also mentioned that after the death of Mr Lodha, His son will be Owner of the property. Yes as there was will and so there is no need to fight about it. But what about Samajwadi Party?
Mulayam Singh Yadav, built it as his property. Whatever it was right now is all because of him. So he holds the authority to decide who will become head of it. For thouse who are reading it from outside of India and having question that what about election and structure? Its India. Here Political Parties are like property. Ok. Let’s accept it. But what about Tata son’s?
Here question become more difficult. Family owned business. But still run by professionals. Also there is the question about Succession. The first head Jamshedji Tata to Ratan Tata, not directly in relation. That is why now the shareholding was divided among some person and institutions, Trusts, Group companies.
The issue is, as mentioned by Sanjay ji, not having Will.
As per Indian law, if the property is earned by you, You have the full authority to decided who will inherit it. But if the property is not earned by you, and its your family property, which you received as part of the family, then everyone in the family is owner of the property. But if there is will that is final.
Different countries have different rules and regulation about it. Some of them directly prohibited inheritance. Some of them indirectly prohibited by making heavy taxation. Some European countries makes it far better then others. With the help of rule and regulation like upto certain limit you can inherit to your friends also. UK Laws about it are more strong. Like
A surviving spouse/civil partner will automatically inherit any unused portion of the deceased’s IHT allowance as a percentage. In other words, if the deceased leaves £162.5K worth of assets to people other than his/her spouse/civil partner, then the surviving spouse/civil partner will have their own IHT allowance plus an extra 50% to reflect the unused portion of the deceased’s IHT allowance.
Some people may choose charity as option. There is no problem in that. We see many billionaire like Warren Buffett Now having will and many of his fans know this.
Some people hold the option like Gifting it. Govt realize that this may use with wrong intention. Many govt have laws about it and makenit clear that such asset is transfered before certain period. Like UK made it 7 years.
One thing is nearly same in many countries. That is Role of Blood Relative or Spouse. If there is no will and still there are some assets, there is legal term used for it as Dying intestate, It is inherited to blood relative and spouse.
Going to end with the tips given by some expert
- Always make will
- Dont give such huge property to your children that they will forget the cost of that assets.
- Keep some part for your last days and dont assume anything.
- Keep your some property for yoir spouse for his/her last days.
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