5 Things in Preparing Inheritance

In a recent month celebrity’s sorrow news has become hot issue. One of the most became the center of attention is the death of world-class musician Michael Jackson, who seems to leave property worth U.S. $ 1 Billion and U.S. $ 500 Million of debts. It looks after someone dies there are many issues around the financial to be completed. Who get what? How the fate of families who left? What will be the property inheritance disputes among family?


Inheritance is crucial in someone’s financial life cycle. Inheritance can arise because of three things. First, the person who dies is called the testator. Second, the legacy property left by the testator, called property inheritance. Third, the person who receives inherited property is the heir.

The problem is, talking about inheritance before someone died is still considered taboo and inappropriate. It seems that expecting a quick death, because death is not expected just like a disaster.

Inheritance Planning
With a legacy planning can provide financial and emotional stability for their heirs. When there is no inheritance planning, wealth will be distributed in accordance with applicable law, in which distribution has not been in accordance with the expectations of you.

Testament contains the desire and purpose of property owners. A testament is a letter of last desire of someone that will be implemented when died. Property owner (testator) should prepare and document the following important information:

1. Detailed list of property
This list contains class asset classification category of wealth. For example, cash assets (savings, deposits), financial assets (stocks, bonds, and mutual funds), property (land, buildings), noble metals (gold, silver), a collection of goods, unit link, or business ownership. This list should also include how the value, ownership status, the location where the asset is located.

2. The portion of the division of property inheritance
Beneficiary can distribute the wealth in accordance with the desires, but must consider the absolute limits. That is absolutely part of the heir (legitieme portie) that can not be removed. There are several financial instruments that have their own rules regarding inheritance rights, insurance policy as an example. Insurance policy usually has set the amount and who the heirs are in the policy.

3. Pension funds
Whether pension funds can be taken at once and cash distributed to the heirs, or given as a regular income to the spouse and children.

4. Education Funds
Whether the education funds in form of savings or insurance can be divided as property inheritance, or directly appointed by a particular heir.

5. Royalty
At the time of signing the commercialization contract of copyrights, patents, etc. Beneficiary generally be required to immediately appoint a heir.


Settlement of debt
After the testator died and the funeral process is complete, the first thing that needs to be completed is the settlement of obligations (debts) receivable between the deceased and other parties. Need to identify the debt first is legitimate or not. If valid, the obligation must be paid.

Next step is heir make an effort to execute the property to pay off the debt left by deceased. Take a long time to execute the property is. Especially when there is still no agreement reached on the distribution of inheritance.

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