Which is the best option: Estate Planning question Question posed

 

ESTATE PLANNING - Question posed by Justice Rangarajan

• A government pensioner gets half the current pay of the post he held and hardly spends it as he lives with his children. His medical expenditure is reimbursable.
• He has a pension account with a bank and maybe another bank account for investment.
• He has the following FD's
• Senior Citizen Savings Scheme Rs 15 L
• FD's in in banks
• Investments in Mutual Fund for 80C - 1.5L per year
• Other Mutual Funds
• All assets are now held with the spouse as joint holder and son as nominee
• What are the options for smoothly passing on the assets to the family?
• Distribute all the assets and keep only pension account.
• Open a PPF for 80C and stop investment in ELSS MF
• Redeem all Mutual funds and re-invest in equal tranches nominating one person each - also make those investments in D'mat account for easy transmission
• There will be the capital gains tax at 10% if all the mutual funds are redeemed. Is it worth paying the tax for redistribution of the assets?
• Any other suggestion?