Fortunately, India does not have tax on inherited wealth or on inherited estate, which means you can inherit large amounts without worrying on tax liabilities like prevailing in the West. One has to be astute in managing and enhancing inherited wealth. Here are 6 ways in which to manage your inherited wealth.
If you inherit a property, you should know all the rules regarding sale and capital gains tax that is payable on the same, if you want to sell the same. If you inherit jewellery and want to liquidate the same you may need the receipts for ease in liquidation. On the other hand shares need to be first transferred to the legal heir and only later can they be sold. In all cases, you should know the rules that govern the same.
If you have inherited large sums you may certainly need professional help, especially from a Chartered Account and a Lawyer. Between them they should be able to solve most of your problems, including tax liability on sale etc.
A certified financial planner may do
Seek the help of a certified financial planner, who may advise you the different ways to invest, particularly when it comes to financial instruments. This will be particularly true if you have inherited large amounts and need to decide between equities, mutual funds, fixed deposits or other small saving schemes.
Settle all your dues
If you have any kind of loan, pay the same off by liquidating some of the financial assets that you have inherited.
Remember capital gains tax, income tax and wealth tax
Learn to pay off taxes that may arise from the asset that you have inherited, especially if you sell the same. These include capital gains tax, wealth tax, income tax etc.
Do not forget insurance
This goes without saying, but, if you have not taken an insurance policy it is worth considering one, despite the fact that you may have inherited large sums of money.