Latest news with #heirs
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Business Standard
2 days ago
- Business
- Business Standard
RBI makes it easier to access, reactivate dormant accounts, deposits
The Reserve Bank of India (RBI) has issued new guidelines to reactivate bank accounts and access unclaimed deposits, giving relief to customers and heirs trying to claim forgotten assets. Banks must offer more accessible options for updating Know Your Customer (KYC) information needed to reactivate a dormant account, according to the new guidelines. What are inoperative accounts, unclaimed deposits RBI norms say that if a savings or current account hasn't been operated for 10 years or more, or if any deposit remains unclaimed for a similar period, it is considered 'inoperative.' The funds in such accounts are transferred to the Depositor Education and Awareness (DEA) Fund maintained by the RBI. Claiming money from these accounts involved a physical visit to the home branch and complicated paperwork. What's new in the updated rules? The RBI, in a circular dated June 12, has amended its earlier guidelines from January 2024. Here's what has changed: KYC update at any branch: Customers can now update their KYC not just at the home branch, but at any branch of their bank. Video KYC allowed: Banks have been directed to facilitate Video-based Customer Identification Process (V-CIP) for reactivating inoperative accounts. This enables customers to verify their identity remotely through a video call. Business correspondents: Banks may also use the services of their authorised Business Correspondents to help customers complete the KYC process. This could be particularly useful in rural and remote areas where physical branches are limited. Why does this matter If you or your family members have forgotten about an old deposit or know of a relative's account lying dormant, these new rules could help you access those funds more easily. The convenience of video KYC and branch flexibility will reduce the burden of paperwork and travel, key for senior citizens, NRIs, and heirs claiming deceased family members' funds. What to do next? Check with your bank if you suspect an old account might have gone dormant. Contact customer service or visit any nearby branch to start the KYC process.
Yahoo
06-06-2025
- Business
- Yahoo
Should you buy an annuity? Here's 4 times when it doesn't make sense to do so
Annuities can be a solid tool for generating guaranteed income in retirement, but they're not for everyone. Despite promises of financial peace of mind, annuities come with some big trade-offs. They're complex, often expensive and restrict access to your funds. Before you tie up your money potentially for decades, it's worth asking yourself if an annuity truly fits your financial situation. In plenty of cases, it might not. Annuities are essentially a bet that you'll live long enough to make the upfront investment worth it. You give an insurance company a lump sum or series of payments, and in return, they promise to pay you income — sometimes for life. The longer you live, the better your investment pays off, because no matter how long you live, those guaranteed payments keep coming. However, if you have concerns about your health or your family history points to a shorter life expectancy, you may be better off keeping your money elsewhere. You could spend $100,000 or more to buy an annuity and only get a few years of payments before passing away — leaving little to nothing for your heirs. Some annuities include a standard death benefit, which pays out the remaining contributions minus fees and withdrawals. (You contribute $100,000, receive $60,000 in payouts and your heirs inherit $40,000 minus fees.) You can also add a death benefit rider to your annuity, but that protection comes at an added cost — one you could avoid by skipping an annuity altogether. Similarly, since annuities restrict access to your initial investment, it can be costly — if not nearly impossible — to access your money if your health rapidly declines and your financial outlook shifts. In short, if your health isn't solid, keep your cash more liquid and flexible somewhere else. Learn more: Here's what you should know about inheriting an annuity. An annuity is often described as a do-it-yourself pension. If you're lucky enough to have a traditional pension from your job when you retire, you may already have guaranteed lifetime income. Let's say you're set to get $3,000 per month from your pension, and your expenses are $4,000 per month. Maybe an annuity could cover the $1,000 gap — but so could a smart systematic withdrawal plan, not to mention the ultimate source of guaranteed income in retirement, Social Security. If your pension covers all your essential expenses, an annuity contract will only complicate your retirement plan. You're likely better off keeping additional funds in an IRA or a high-yield savings account for emergencies and nondiscretionary spending. Annuities are complex and a bit different than other financial products. Learn how annuity fees and commissions work and the common annuity terms that every investor should know. You may also want to consult with a financial advisor if you're considering an annuity. Annuities are for people who already have their basic financial house in order. If you're still working on building up your emergency fund or paying off considerable debt, buying an annuity could make your overall financial situation worse, not better. Why? Because annuities generally require a large upfront investment in order to produce any sort of meaningful income in retirement — think $100,000 and up. Most financial experts recommend putting no more than 25 percent of your savings into an annuity, so you should have plenty of money elsewhere before signing a contract. Because once you buy an annuity, getting your money out can be difficult. Annuity funds are notoriously difficult to access without getting hit with surrender charges and tax penalties. And once you annuitize your contract, meaning you start receiving payouts from the insurer, you may not be able to take an early withdrawal at all. Annuities also generally don't offer great growth potential or adjust payouts to keep pace with inflation (unless you pay extra). If you're still trying to build wealth, you're likely better off keeping your money in a Roth IRA or a brokerage account. Get started: Match with an advisor who can help you achieve your financial goals Annuities are most useful for people who want to outsource some of their retirement planning decisions — particularly when it comes to managing investment risk and timing withdrawals. The insurance company handles the investment, the payouts and manages the risk of outliving your money. But that convenience comes at a cost: high fees, rigid rules and less flexibility. If you feel confident managing your own portfolio, it's not very useful to pay an insurance company to do what you can already handle yourself. You're likely to get better returns and more control by keeping your money invested and drawing it down in a tax-efficient way. If you want a second opinion, a one-time session with a fee-only financial advisor could go a long way and cost only a few hundred dollars — a drop in the bucket compared to the potential hidden fees baked into many annuity contracts. While annuities aren't the right choice for everyone, there are valid reasons why they continue to be part of retirement planning conversations. The trade-offs are real, but so are the benefits — especially if you're focused on long-term financial security. First, not all annuities are expensive or inflexible. Multi-year guaranteed annuities (MYGAs): These are fixed-rate annuities that act more like CDs, but with deferred taxes. They're simple, low-cost and don't require giving up access to your money forever. Longevity annuities: These deferred income annuities are purchased at retirement but don't start paying out until later — usually around age 80 or 85. Because they're designed to cover only the later years of retirement, they require a much smaller upfront investment than annuities with lifetime payouts. Second, you might feel confident managing your investments now — but what about in your 80s or 90s? Cognitive decline is a real possibility, and not everyone has a reliable person to step in and manage their finances. An annuity can automate your income and help protect you from poor decision-making later in life. And finally, while annuities are often seen as rigid, there are ways to build flexibility into your contract. For example, you can add a long-term care rider if you're worried about your declining health. Many contracts also allow annual withdrawals of up to 10 percent before you fully annuitize, giving you access to a portion of your money if you need it. Ultimately, buying an annuity is a deeply personal decision. The best move is to talk through your options with a qualified financial advisor before moving ahead. Annuities are heavily promoted as a solution to retirement planning, especially by sales reps and agents who make commissions selling them. But in reality, they're far from a one-size-fits-all fix and there are plenty of times when buying an annuity simply doesn't make sense. If you're on the fence, ask yourself what problem you're actually trying to solve by purchasing an annuity. If it's peace of mind, reliable income or protection against market volatility, there might be simpler, cheaper ways to get there. Compare advisors: Bankrate's list of the best financial advisors Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. Sign in to access your portfolio
The Citizen
13-05-2025
- Politics
- The Citizen
Mandela's great-grandson slams disgruntled Afrikaner ‘victims': ‘Provide a ship, give them space and let them leave.'
Mayibuye says South Africa is building a country where 'justice reigns' and land is 'shared'. Nelson Mandela's great-grandson, Mayibuye Mandela, has called on the Department of Home Affairs to strip 49 Afrikaners of their South African citizenship after they sought refugee status in the United States (US). In a media statement, Mayibuye stated that the group of Afrikaners had spread false claims about the South African government in the US, alleging intentions to seize their land and target white people. He described them as traitors. 'To the Department of Home Affairs, revoke their citizenship. Strip them of the right to call themselves South African. 'They have betrayed this country. They have lied about our people. They have attempted to spark international hatred toward our nation. They must never again benefit from the privileges of this republic,' he said. No evidence of white genocide Mayibuye said that while South Africa is still in the process of healing from apartheid, there is no systematic hatred of white people. 'There is no genocide in South Africa. 'What exists is a country still in recovery from centuries of land dispossession, apartheid crimes and systemic oppression. What exists is a people trying to rebuild a nation from the ashes of white supremacy. What they fear is not violence,' he said. Mayibuye said the US should relocate any Afrikaner farmer who wants to leave, since it is a personal choice. He also disputed that they should be classified as refugees. 'To Donald Trump and the United States government, if more of them want to leave, do not waste your planes. Provide a ship. Give them space and let them leave in peace. South Africa will not beg racists to stay. Let them go and let them stay gone. 'And as they go, we as a nation must act.' He expressed full support for the Expropriation Act and other laws that support land restitution. 'We are not looters. We are the rightful heirs of this land. The dispossession of African people must end, and no false refugee claim or racist narrative will stop the movement,' he said. ALSO READ: Ramaphosa to meet Trump, says 49 Afrikaners headed to US are not 'refugees' ANC reacts to Trump's Executive Order and relocation of Afrikaners Meanwhile, in a statement on Tuesday, the ANC said it was also dismayed by the Trump administration's decision to relocate the 49 Afrikaners who claimed to be persecuted in South Africa. 'Let it be categorically stated: there are no Afrikaner refugees in South Africa. No section of our society is hounded, persecuted or subject to ethnic victimisation. 'These claims are a fabrication and a cowardly political construct designed to delegitimise our democracy and insult the sacrifices made by generations who fought for freedom.' The party blamed some organisations and individuals for spreading misinformation about the state of affairs in South Africa in the U.S. and other parts of the world. 'What the instigators of this falsehood seek is not safety, but impunity from transformation. They flee not from persecution, but from justice, equality, and accountability for historic privilege. 'The misuse of refugee protections to shield right-wing, anti-transformation elements is a violation of the spirit and letter of international law. Millions around the world face real persecution, and they are the ones deserving of sanctuary, not those offended by a democratic society.' Meanwhile, on Monday, Trump confirmed that he and President Cyril Ramaphosa will hold a high-level meeting in Washington next week. The South African government reportedly explained to the Trump administration that there is no white genocide in the country. However, the Trump administration claimed that it had received evidence backing these claims. NOW READ: Afrikaners who accepted Trump refugee offer 'know there's no persecution in SA'
Forbes
11-05-2025
- Business
- Forbes
$15 Million estate tax exemption proposed. What should you do?
Congress now has a proposal to make the estate, gift and GST exemption $15 million in 2026 instead ... More of about $7 million. he Joint Committee on Taxation has just released the attached description of the tax provisions contained in the reconciliation legislation and it provides for a $15 million permanent estate tax exemption. Lots of implications to this, if it is enacted: Here's the Joint Committee's Actual Proposal 'The proposal permanently increases the unified estate and gift tax exemption to an inflation-indexed $15 million for taxable years beginning after December 31, 2025. Accordingly, the generation-skipping transfer tax exemption is also permanently increased to an inflation-indexed $15 million. The $15 million exemption amount is indexed for inflation with a base year of 2025. Accordingly, the exemption amount is $15 million for decedents dying and gifts made in calendar year 2026 and increases with inflation thereafter.' What Does This Really Mean to Your Planning? While the pressure might be off to get planning completed by year end, if you still haven't planned to use your estate before the 2026 reduction (which now looks less likely to happen) you've been procrastinating. That's not good for you and your heirs. Note 'you' was included as well as your heirs. Most folks assume, quite incorrectly, that estate planning is only about getting more chips to the next generation. Not so. Estate planning done well and comprehensively is also about protecting YOU (caps intended). We live in an incredibly litigious society. Nothing that happens in Washington with tax legislation now or in the future is likely to affect that. Estate planning done well can protect some of your assets from claimants and creditors, regardless of the estate tax implications. So, reason one to have planned, to plan now, and to continue to plan, is protecting your wealth. This goal applies to almost everyone (albeit in varying degrees). Another reality is the continuous changes in the tax laws. Anyone following estate tax proposals and laws enacted must have a bit of whiplash from turning their head back and forth so many times. Whatever tax laws are enacted by the current administration it will likely be changed by a future administration. Keep in mind this is all still at the proposal and negotiation stage, it may change or be modified several times before anything is enacted. So, for those with meaningful wealth that might be subject to an Elizabeth Warren type of wealth tax, or a Bernie Sanders type of estate tax (perhaps we'll get a $3.5 million exemption with the next election!) why not plan now? Finally, planning now might facilitate also creating state or federal income tax savings. As but one example, if you create a trust that pays its own tax (complex or non-grantor trust) in a no tax state and avoid income tax in the high tax state you live in. What To Do Now? Keep planning. Plan to take advantage of the many really important non-estate tax opportunities planning can offer. In short, take planning steps that make sense regardless of what happens with the estate tax as it will probably change again, and again, and….
Forbes
26-03-2025
- Business
- Forbes
Holistic Retirement Planning: Balance Your Life With Tomorrow's Needs
Holistic retirement planning can mean the difference between a secure retirement and one that is fretful. Planning for retirement isn't just about crunching numbers and growing your nest egg; it's about achieving a balance between living well today and securing financial freedom for tomorrow. While all Canadians face challenges such as fluctuating housing markets, extended life expectancies, and a changing pension landscape, holistic retirement planning can mean the difference between a secure retirement and one that is fretful. Are you a traveler? Do you prefer to spend time at home? What are your hobbies? Retirement planning is deeply personal, and understanding your vision will help guide the decisions you make today to address lifestyle aspirations and long-term financial security. A key pillar of holistic retirement planning is a flexible financial strategy, including variables such as such as inflation, health expenses, and market fluctuations. Here are some important components: Most people face the dilemma between saving for tomorrow and enjoying life today. A common pitfall is adopting an all-or-nothing mindset: either saving aggressively while compromising current happiness or spending freely without planning for the future. The key lies in creating a sustainable balance, including: With Canadians living longer, planning for physical and mental well-being becomes crucial to a fulfilling retirement. As we age, healthcare expenses will increase—sometimes significantly. We can all help ourselves through: Life is unpredictable, so your retirement plan should be flexible enough to adapt to the inevitable. Whether it's unexpected medical expenses, changes in family dynamics, or market downturns, an annual review of your retirement plan is recommended. Additionally, insurance options such as long-term care insurance can protect against unforeseen expenses. While there is plenty of retirement planning advice available online, working with a certified financial planner can provide personalized insight into tax-efficient withdrawal strategies, investment diversification, and estate planning. Organizations such as FP Canada offer designations like the Certified Financial Planner (CFP), ensuring that advisors meet rigorous standards of competency and ethics. As well, estate planning is an often-overlooked but vital aspect of holistic retirement planning. Preparing a will, setting up trusts, and assigning beneficiaries can prevent legal complications and ensure your assets are distributed according to your wishes. With Canada's probate laws varying by province, it's important to consult an estate planning lawyer who can help you minimize taxes and fees for your heirs. Holistic retirement planning is about more than just accumulating wealth; it's about aligning your financial strategy with your lifestyle goals and overall well-being. When you balance current enjoyment with future security while prioritizing health and staying adaptable, you can create a retirement plan that supports a fulfilling life today and tomorrow. Start small, seek advice when needed, and remember that your goal is not just to save ... but to thrive!
