Advertisements

Intestate Succession As Per The Hindu Succession Act,1956


wealthymatters.com

The Hindu Succession Act,1956 applies if the intestate is Hindu,Buddhist,Jain or Sikh but doesn’t automatically include scheduled tribes.It also includes legitimate or illegitimate children,if one of his/her parents is Hindu,Buddhist,Jain or Sikh.It also includes converts and reconverts to these religions.

When a Hindu male dies intestate i.e.without a will, and has not married a non-Hindu,the right of succession first devolves upon the Class 1 heirs, if any,shown in the diagram to the left. If even one such heir exists, all other relatives who do not fall within this category are excluded automatically.If there are several Class 1 heirs, then there are certain rules as to how they will share the properties amongst themselves. Read more of this post

Advertisements

Keeping It Within The Family


wealthymatters.com

Ford Family – Passing Wealth Down The Generations


wealthymatters,comTo pay for the New Deal, meant to pull America out of the Great Depression, FDR raised taxes in America.A per the new tax laws in 1935, taxes were raised to 50 percent on estates over $4 million and to 70 percent on those over $50 million.Henry Ford didn’t like the implications of these taxes for his business.You can read about his reasoning in these excerpts from newspapers of that time:

http://trove.nla.gov.au/ndp/del/article/62414312

http://news.google.com/newspapers?nid=1915&dat=19250919&id=4AMhAAAAIBAJ&sjid=WnUFAAAAIBAJ&pg=3508,5720783 Read more of this post

The Basis Of Real Independence


wealthymatters.com“If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability.” ——Henry Ford.

Merely transferring money to children will not make them and keep them wealthy.They need to know how to make it and keep it in the real world.Basically develop their common sense.

Merely becoming wealthy will not set a person free unless like Henry Ford we can say:“If I lose a billion dollars, I will have it back in less than five years.”

The Dam Analogy


wealthymatters.comA river and a dam across it is a nice way of visualizing one’s finances.A source of income is like a river.To save a bit of it is like building a dam across the income stream.

In real life dams are used to impound water in times of plenty so that it can be used when water is scarce.Deducting money from a salary cheque to fund one’s pension or investing regularly in a mutual fund  via a SIP , is like holding back water in the time of plenty to use when water is scarce.If a person comes by a windfall,say, by selling a business/ winning a lottery/receiving an inheritance etc. and saves/invests the money safely,it is akin to storing rainwater from a freak shower for use later. Read more of this post

%d bloggers like this: