geriatrics and legal issues by : pradeep kumar sahgal senior advocate legal and direct tax advisor

GERIATRICS AND LEGAL ISSUES

By : Pradeep Kumar Sahgal Senior Advocate

Legal and Direct Tax Advisor

CONTENTS OF THE PRESENTATION

1. Nomination 2. Will3. Legal Rights of Senior Citizens4. Concessions and Facilities for Senior Citizens5. 10 documents to secure before someone dies6. Generic Direct Tax Planning

Nomination

• Appointing a nominee not compulsory but highly advisable

• In case of joint accounts, the nominee’s rights arises only after death

• The nominee has no right over the assets and is legally bound to transfer it to the legal heirs, one of whom maybe a nominee himself

• A nominee may generally be a family member• What happens when a person dies without

nominee ?

Nomination

• Nominee for bank accounti. In the event of deathii. View of the Apex Courtiii. RBI Guidelines• Nomination for Safe Deposit Lockers• Nominee for DEMAT Account• Nomination in Mutual Funds• Nominee for Insurance• Nomination in PPF

Drafting of a WILL

• A will is a legal instrument that permits a person, the testator, to make decisions on how his estate will be managed and distributed after his death.

• Basic Concepts of a Will It is extremely easy to make a will You do not need a lawyer to draft a will Language can be simple, but intention has to be clear

in writing It must be signed by atleast 2 witnesses.

Drafting of a WILL

• Basic Concepts of a Will (….continued) Will does not have to be registered, but it is good if

you can registered. Registration fee – original will Rs.100/-, certified copy Rs.20/-

You can change your will at any time You can revoke your will at any time, with/ without

making a fresh will, but must be done in a proper way with signature of testator

A supplement to the will (called ‘codicil’) can be made, but has to be also signed by 2 witnesses.

Drafting of a WILL

• Some Technical Terms If a person dies without making a will, he is said to

have died ‘intestate’, in which case Indian Succession law 1925, will apply based on your religion.

Probate is granted by a court, certifying the validity of the will. In presidential towns Mumbai, Chennai and Kolkata obtaining a probate is compulsory to execute the will of the testator

Drafting of a WILL

• Three Players are involved in will One who is declaring his will is called a Testator. He

must be aged 21 years or above and must be of sound and judgmental mind.

Second who receives some property/assets etc. under the will would be the beneficiary.

Third party is the Executor who sees that following your dealth your estate and your assets and possessions are distributed strictly in accordance with your will.

Drafting of a WILL

• First Step Make inventory of one’s assets such as:i. Bank investments (saving account, current account, fixed

deposits receipts, recurring deposit accounts)ii. Financial Investments (stocks, debentures, bonds, mutual

funds, Post office investments like India Vikas Patra, National saving schemes, etc)

iii. Propertyiv. Personal assets (jewellery, cars, art collections etc)v. Insurance (life insurance policies, retirement benefits)vi. Intellectual Property Rights

Drafting of a WILL

Then make a list of liabilities what you have to pay such as:

i. Mortgages ii. Loans Determine your net worth i.e. Assets - Liabilities

Drafting of a WILL

• Second Step Make list of all beneficiaries Appoint an executor, who shall be responsible to

probate from the court and distribute the estate as per the wishes of the testator as per the will

Of the 2 witnesses, you may choose your doctor and a lawyer and video record the signing of the will

Store the will in a safe place, which can be easily obtained after your passing away

Drafting of a WILL

• Review your Will In case of change in circumstances you may review

and update your will accordingly. If you decide to alter it, it is better execute a fresh will

incorporating the changes rather than amending the old one because it is difficult to preserve the amendments.

The fresh will shall always contain the clause that this is my last testimony or will, this revokes my earlier wills or this is in suppression of my earlier wills.

Legal Rights of Senior Citizens

• Constitutional Protection• Legal Protectionsi. Under Hindu Laws Maintenance of parents under Hindu personal law is

contained in Sec 20 of the Hindu Adoption and Maintenance Act, 1956.

Obligation to maintain aged parents casted on sons and daughters as well.

Only those parents who are financially unable to maintain themselves from any source, are entitled to seek maintenance under this Act.


ii. Muslim Law Children in easy circumstances are bound to maintain their

poor parents, although the latter may be able to earn something for themselves

A son though in strained circumstances is bound to maintain his mother, if the mother is poor, though she may not be infirm.

A son, who though poor, is earning something, is bound to support his father who earns nothing.

According to Tyabji, parents and grandparents in indigent circumstances are entitled, under Hanafi law, to maintenance from their children and grandchildren who have the means, even if they are able to earn their livelihood.


iii. Christian and Parsi Law The Christians and Parsis have no personal laws providing

for maintenance for the parents. Parents who wish to seek maintenance have to apply under provisions of the Criminal Procedure Code.

• Under The Code of Criminal Procedure The old parent(s) needs to establish that his

children have sufficient means/funds and have neglected or refused to maintain them


• Governmental Protections

Under the MAINTENANCE & WELFARE OF PARENTS & SENIOR CITIZENS ACT, 2007

This act has been introduced to provide for more effective provisions for the maintenance and welfare of parents and senior citizens guaranteed and recognised under the Constitution of India

Concessions and Facilities for Senior Citizens

• Ministry of Social Justice & Empowerment

Under the Scheme "Assistance to Voluntary Organisations for Programmes relating to the Welfare of the Aged”financial assistance upto 90% of the project cost is provided to NGOs for establishing and maintaining Old Age Homes, Day Care Centres, Mobile Medicare Units and to provide non-institutional services to older persons.

The Scheme of Assistance to Panchayati Raj Institutions / Voluntary Organizations / Self Help Groups for Construction of Old Age Homes / Multi-Service Centres for older persons (Non Plan Scheme) - Under this Scheme, one time construction grant for Old Age Homes/Multi-Service Centre is provided to non-governmental organizations on the recommendation of the State Governments / UT Administrations.


• Ministry of Finance

Income tax rebate upto an income of Rs. 3 lakh to senior citizen i.e. 60 years and above.

Income tax rebate upto an income of Rs. 5 lakh to very senior citizen i.e. 80 years and above.

Higher rates of interest on saving schemes of senior citizens.

Higher rates of interest on Fixed Deposits with bank.


• Ministry of Road Transport and Highways

Reservation of two seats for senior citizens in front row of the buses of the State Road Transport Undertakings.

Some State Governments are giving fare concession to senior citizens in the State Road Transport Undertaking buses and are introducing Bus Models, which are convenient to the elderly.


• Ministry of Health & Family Welfare Separate queues for older persons in hospitals for registration

and clinical examination.

• Department of Telecommunications Faults/complaints of senior citizens are given priority by

registering them under senior citizens category with VIP flag, which is a priority category.

Senior citizens are allowed to register telephone connection under N-OYT Special Category, which is a priority category.


• Ministry of Railways

Indian Railways provides 40% concession to men aged over 60 years and 50% to women aged over 58 years.

Indian Railways also have the facility of separate counters for Senior Citizens for purchase / booking / cancellation of tickets.

Wheel Chairs for use of older persons are available at all junctions, District Headquarters and other important stations for the convenience of needy persons including the older persons.

Ramps for wheel chairs movement are available at the entry to important stations.

Specially designed coaches with provisions of space for wheel chairs, hand rail and specially designed toilet for handicapped persons have been introduced.


• Ministry of Civil Aviation Indian Airlines is providing 50 per cent Senior Citizen Discount on

Normal Economy Class fare for all domestic flights to Indian senior citizens who have completed the age of 65 years in the case of male senior citizens and 63 years in the case of female senior citizens subject to certain conditions.

Air India is offering discount to senior citizens of 60 plus on flights to USA , UK and Europe . Further, Air India has now decided to reduce the age of 60 plus for discount on their domestic routes as well with immediate effect.

Sahara Airlines is offering 50% discount on basic fare for travel on its domestic flights only to senior citizens who have attained the age of 62 years. Discount is applicable in economy class only.


• Ministry of Consumer Affairs, Food and Public Distribution

Under the Antyodaya Scheme, the Below Poverty Line (BPL) families which also include older persons are provided food grains at the rate of 35 kgs. per family per month. The food grains are issued @ Rs.3/- per kg. for rice and Rs.2/- per kg. for wheat. The persons aged 60 years above from the BPL category were given priority for identification.

Under the Annapoorna Scheme being implemented by the States/UT Administration, 10 kgs. of food grains per beneficiary per month are provided free of cost to those senior citizens who remain uncovered under the old age pension scheme.

Instructions to State Governments for giving priority to the Ration Card holders who are over 60 years of age in Fair Price Shops for issue of rations.


• MCD, Delhi MCD, Delhi, has opened a separate counter to facilitate the senior

citizens for submission of property tax bills. A rebate of 30% of the property tax due on the covered space of a

building up to one hundred sq. mtrs. of the covered space has been allowed by the corporation in the case of any self-occupied residential building singly owned by a man who is 65 years or more in age.

• Miscellaneous Courts in the country accord priority to cases involving older persons and

ensures their expeditious disposal. Under the Old Age Pension Scheme, monthly pension is given at variable

rates to the destitute old by various State Governments/UT Administrations.

TEN documents to secure before someone dies

1. Primary documents like birth certificate, marriage certificate, PAN card, passport, election ID card and the Aadhaar card, will be needed when transferring assets to your heirs.

2. Make a list of all the Insurance policies, mentioning the name of insurers, policy numbers, insured sums and the tenures.

3. If you have a Pension account, mention the account number and nomination details. Give the pension account number with your employer.

4. All property-related documents including mortgage details. If property is insured, mention policy coverage.

TEN documents to secure before someone dies

5. Make a list of various bank accounts, giving the name of the bank, the account number, holding pattern and the nomination details.

6. Mention the name of bank, locker number, ownership pattern and whereabouts of the key. Maintain an inventory of items kept in the locker and update every time you operate it.

7. Give the name of depository partner, demat account number and nomination details. If possible, update the details of the securities in the demat account.

TEN documents to secure before some one dies

8. Give details of other investments like PPF account and folio numbers of other post office investments. Make a list of mutual fund investments, mentioning folio numbers, ownership pattern and nomination details.

9. If you have taken or given private loans to relatives or friends, mention the amount and the date by when these are payable/ receivable.

10. Though Online passwords are to be kept secret, keep a list for emergency reference. Mention the website, the online ID and the password.

Generic Direct Tax Planning

THANKS

geriatrics and legal issues by : pradeep kumar sahgal senior advocate legal and direct tax advisor

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