Inherited Wealth in India: What to do & what not
Have you ever wondered what you would do with an inherited wealth such as cash/property/jewelry etc. in India ?
This article helps in how to make good use of inherited wealth and avoid wasting money.
Here are the tips:
Planning: The very first step is planning. Never start making use of money as soon as you get it. Take advantage of the first few months to develop a plan, along with expert advice to use and invest money. It can be naturally tempting to start spending your inheritance, but it may be smarter to set a waiting time and use this time to decide how to make the wealth grow.
Seek expert advice for financial planning: If you do not have knowledge of investments and financial terminologies, then seek a financial advisor’s help. A financial planner can help you develop a strategy that works best for your situation, and devise an investment plan according to your risk appetite.
Consider taxation: The good news is that, in India, there is no tax on inherited wealth or property. However when you make use of the inherited money or property in order to generate wealth then you become tax liable. And your financial consultant is the best person to guide on taxation, especially when you do not have knowledge of this subject. Do not think that generating a large sum will go unnoticed. Ask your advisor about the necessary taxes according to the type of inheritance received and income generated out of it. Anyone would love to stay rich and hate paying taxes. But still as a responsible citizen, paying taxes helps government in nation building.
Take legal help: We often hear long legal cases because of inherited wealth. And only a lawyer can help you resolve any potential legal issues. So before making any use of money received, consult a lawyer.
Invest wisely and make some extra profit: Everyone wants to make money out of money. You will come across various high return investment products but not every product will offer you guaranteed high returns. It’s likely to get attracted to risky, illegal, or possibly scammy investment products requiring high investment and claiming to give highest returns. So it is best advised to look for a safe investment, which earns a little each year and at the same time keeping pace with the market.
Do not show off: If you start talking about the money you’ve received, you may start noticing how your circle of friends and family growing. People from the past will suddenly want to come closer again, but they may only be interested in what they can get from you.
Do not invest in business: Even though you may have a substantial amount of money in your possession, don’t invest in a new business without knowing complete details. Take expert’s advice before putting money.