Bengaluru: Kanara Entrepreneurs held a members meet at the Grand Magrath, Magrath road, Bengaluru, recently. On a broader theme of 'Failing to Plan is Planning to Fail' Manoj Shenoy, CEO – L&T Capital Markets Limited the main spokesperson of the meet spoke on 'Protecting, Preserving and Managing the Estate / Assets'.

Peter Anil Rego, KE president, presided over the meet and in his address, informed, "The greatest gap between 'I should' and 'I did' is procrastination. Procrastination is an assassin of opportunities. The only way to deter procrastination from ruling your life is by taking action."

"Knowing is not enough, we must apply. Willing in not enough, we must Do," he concluded.

Spokesperson on the theme, Manoj Shenoy said, “Can I maintain the same lifestyle many years down the lane? This is a question we very often ponder about, but most often do not take the necessary action proactively to ensure, unless circumstances force us."

Speaking on Estate Planning, he said,"It answers some more pertinent questions that entrepreneurs often ask themselves – Who will call the shots when I choose to retire? Who gets what when I’m gone? Who will take care of my kids? Can I preserve my money for my heir? Do I need to form a Trust? Do I have the right beneficiary to my establishment?"

He gave instances of highly placed corporate executives when in tight situations not having a track of various assets that they own. "Estate planning is the process of anticipation and arranging during a person’s life for the management and disposal of that person’s estate during the person’s life and at and after death, while minimising gift, estate, generation skipping transfer and income tax. Simply put, it is arranging all the assets a person possesses, including Bank Accounts, homes and other immovable properties, movable properties such as vehicles, patents, social media accounts or any other assets in an organised way, for its more efficient use," Manoj informed.

He further said, "Assets titling and nomination or designation of beneficiary is a must for everyone. A power of attorney could be executed in favour of the beneficiary. Writing a will is a basic necessity in this aspect as also insurance, especially a Term or a Risk Insurance."

As entrepreneurs are generally risk takers, apart from the need of estate planning for just wealth preservation and management, Manoj spoke on the myriad ways it would benefit entrepreneurs. "From avoiding unnecessary encumbrances on assets, to saving inheritance tax and taking care of unplanned medical emergencies or incapacitation it will bring long term financial security, including providing shelter during one’s bad times or later years. Nowadays, with instances of divorces on the rise, it helps in minimising one’s loss of assets in the event of such separation," he said.

"Not planning well could result in transmission of one’s assets to unintended beneficiaries, bearing huge estate taxes or huge medical or healthcare expenses resulting in depletion of wealth. Incorrect legal structuring would sometimes make it difficult to liquidate assets when absolutely required. Not planning prudently could also lead to loss of inheritance due to creditors or law suits or in the event of divorce," Manoj added.

"As Inheritance has complex emotional and family relationship impact, it is simply not just an economic or legal issue," Manoj explained, "The various ways in which estate planning could be carried out and the various structures involved in it, right from the most common and simple practice of making a will, which is the legal declaration of the intention of the testator with respect to his property. Forming a trust ie placing property under the control of person or entity in the confidence that it will be held for and distribution to beneficiaries will help in managing huge assets. Some Entrepreneurs transfer wealth into a corporate entity and the beneficiaries are the shareholders."

"When the assets or properties involved are outside the country, offshore trusts could be formed in an offshore jurisdiction for optimising taxation and expenses. Several business families have a family arrangement by way of an agreement between all the members of a family wherein they declare the manner in which the family will operate," he said, explainng the structure of a trust, including the roles of a settlor, protector, advisory board and trustees, including the dos and don'ts in the formation of a trust.

Manoj Shenoy, at the end of his presentation, fielded questions from the audience including the trustworthiness of trustees in India, the expenses involved in forming and maintenance of a trust, and the legal validity of a will.

Peter Rego thanked the sponsors L&T Financial Services and Kotak Mutual Fund for the day’s event.

The meeting was emceed by Adrian D’Souza. He enthused everybody to accept that change is the way of life and recommended that “If you look at only the past or future, you will miss the present.”

Four new members were inducted by Naveen D’Souza, director of membership, and installed by Peter Anil Rego. The newly inducted members were Arun Furtado, Royston Rodrigues, Freeman D’Almeida, Kevin Joseph Martis.

The lucky draw at the meeting was won by Anthony Saldhana. The vote of thanks was given by Stan D’Souza. The meeting concluded with a fellowship dinner.