Money tree: What parents must do for their kids' future

You have just retired, want to relax and enjoy this phase of your life. Well, before you cool your heels, there are three things you must do.

Step 1: Know your worth

Summarise all current investments and note down when they were bought, when they will mature and what is your likely future decision on those investments.

Step 2: Organise the paper work

• Store all documents (insurance, investments, property, et al) in one place.
• Maintain only two or three bank accounts with banks that offer a good technology platform, so you can easily keep track of the inflow and outflow of funds.
• Use one or two credit cards, only. This makes it easier to track spending.
• Write down your income and expenses, every month. Income comprises your pension income, investment income, dividends, interest payments, etc. Your monthly expenses include cost of living, local traveling, entertainment, etc.

Now, that your basic book-keeping is in order, you need to create a will.

Step 3: Create a will

Picture this scenario. Say you or your spouse passed away sans nominating your children in your will. Or you do have a will for all the assets you created during your lifetime, but your spouse doesn't, and you both met with an accident and passed away.

What happens to your assets and to the subsequent inheritance of these by your children? They will have to undergo a daunting process to get accounts transferred in their name.

It's a good idea to check your share holdings and nominations before any eventuality. Find out if your bank accounts are in your name, only. If yes, ensure that your spouse is included, too. Find out if there's a nomination filed with the financial institution.

The best thing is to prepare a will. Write down everything you own and specify who should get what after you are gone.

Registration of a will is not compulsory; simply let your family know that there is a will and where to find it in your absence.

And, if you don't let them know, you'll have your very own Indiana Jones looking for clues!

Disclaimer: The contents of the above articles are the intellectual property and copyright of the author, Kartik Jhaveri. No part may be used or reproduced in any form or manner. If you choose to act upon the information contained in the above article it is at your own risk. This article is purely educative and you are strongly advised to consult an expert prior to taking any significant decision.