8 easy steps for Financial Independence – Step 8 (Asset Transfer)

8-asset transferLife is really simple, but we insist on making it complicated. – Confucius

This is the most important step while handling our Personal Finance. Because if we do not make a plan how our Financial Assets will be transferred, it can lead to a complication in the later stage to our family. Most of the time, people think that since we have registered a nominee(s), the asset will be owned by the assigned nominee automatically on demise of the asset holder. Which is not always true.  Nominee is only a trustee of the assets and the assets will be transferred to the nominee. But the owner will be as per the WILL or will be as per the country’s succession law (in absence of WILL). Hence to fix future confusion or complication within family for the financial assets, it is strongly recommended to make a WILL.

A WILL is a legal declaration of the intention by the one making it – the testator –with respect to property that he/she desires to be carried into effect after his death. Anybody who is 18+ of age, sound mind, free from threats, fraud, and undue influence can make a WILL. We can update/change our WILL at any point of time. We must use the title ‘Last Will And Testament Of (state your name here)’ to make it clear that the document is your Will and legal.

It is advisable to seek legal help for making one’s WILL. As there are different succession ACT’s in India based on different religion.

Now a days WILL can be made online, such as “MY WILL Service” from SBI (https://sbicaptrustee.in/mywill/index.jsp), www.willeffect.in etc.

Apart from Financial Asset Transfer planning to your loved one, there are few other important assets, for those also we have to make a plan. Other important assets are:

  1. Our Financial Knowledge.
  2. Important lessons learned during our life.
  3. Our experiences (failure, success).
  4. Important books, movies which transformed our life.

“Financial literacy is just as important in life as the other basics”. – John W. Rogers, Jr.

Yes, we have to make a plan to transfer above said assets, which we have accumulated over a long period of time. As this will directly help our loved one.

This brings to end of our “Personal Financial Portfolio Life Cycle” series. Hope this gives you an insight of “How to create your own Personal Financial Portfolio”.

Thank you once again for your time.

Wish you best of luck and happy financial life.

Important Note: It is strongly advised that take professional help to create your Personal Financial Portfolio.

Personal Financial Portfolio life cycle:

Step 1: Awareness

Step 2: Present Financial Status

Step 3: Goal Setting

Step 4: Planning

Step 5: Plan Execution

Step 6: Plan Evaluation

Step 7: Financial Achievement

Step 8: Asset Transfer

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