Estate Planning Tools for Senior Citizens
For senior citizens, estate planning is crucial to ensure that their assets and wishes are handled appropriately. Here are the tools and considerations to keep in mind:
Nomination:
Nomination is vital for all financial products, including safe custody and deposit vaults.
It facilitates quicker claim settlements and alleviates the burden on surviving family members.
Always ensure that your nomination is registered and updated when necessary.
Although important, note that a WILL can override a nomination.
Additional Estate Planning Tools:
Will: Establishes the distribution of assets after death and can override nominations.
Succession: Manages the orderly transfer of assets and responsibilities.
Life Insurance: Provides financial protection for beneficiaries.
Power of Attorney: Grants authority to someone to manage your affairs.
Gift and Partition: Allows distribution and division of property among heirs.
Trust: Helps manage and protect assets according to specific wishes.
Pension Management:
Existing accounts can be used for pension payments, so there's no need for a separate account.
Pension accounts can be transferred between banks or branches as needed.
Obtain a Digital Life Certificate through the ‘Jeevan Pramaan’ service using Aadhar at Jeevan Pramaan.
Submit your ‘Life Certificate’ to your bank branch every November. If you are unable to do this due to illness, a bank official can visit your home or hospital to assist.
Banking Information:
It is advisable to hold a joint account with your spouse and ensure the nomination is registered.
Set operating instructions as ‘either or survivor’ or ‘former or survivor.’
To withdraw fixed or term deposits early, provide the bank with a mandate at the time of deposit or during its term.
Unclaimed fixed deposits may be automatically renewed for another term at prevailing rates if previously arranged.
Bank Operations for Elderly, Ill, or Incapacitated Individuals:
Seniors can withdraw money using their thumbprint, verified by two witnesses known to the bank, including a bank official.
If you cannot provide a thumbprint or visit the bank, a mark on the cheque or withdrawal form can be used, identified by two witnesses.
Specify a person to withdraw funds on your behalf, who must be identified by witnesses and provide their signature to the bank.
By utilizing these tools and processes, senior citizens can ensure that their financial and personal affairs are managed smoothly and according to their wishes.
*The information in this document has been adapted from articles available at https://www.rbi.org.in/FinancialEducation/Home.aspx. The original articles can be accessed directly for more comprehensive insights.
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