Estate planning is a process by which an individual transfer his assets to his immediate further generation or his spouse and kids, estate planning could avoid all legal administration cost and eliminate uncertainties in protecting the assets from outsiders.
Consider a person aged 36yrs living with a spouse and 2kids was earning X amount living in his own home and have a life cover of 1 crore and savings of 5lakh towards his kids future, in a unexpected event he passed away and his family receives the insurance corpus.
If his spouse don’t know how to manage the funds effectively the funds are more likely to be looted by outsiders or if you could prepare a will by stating how your assets need to be distributed to whom and when will protect your family.
If a will is prepared with Corpus received from Insurance Claim will be utilized as follows 30% will be put in a Bank FD with Annual Interest received for living expense and remaining will be invested in both kids name equally till they turned 18 will protect your family from outside influence
Above mentioned example is a basic example of someone who hasn’t created much assets there might be a situation where you need a proper Will to avoid disputes among your own family members.