Inheritance Planning Calculator
Plan your wealth transfer, calculate inheritance taxes, and optimize estate distribution for your heirs. Ensure smooth transfer of assets with proper tax planning.
Enter Inheritance Details
Total Estate Value
₹1,00,00,000
₹
Total value of all assets including property, investments, and savings
Number of Heirs/Beneficiaries
3
persons
Number of individuals who will inherit your estate
Distribution Type
Equal Distribution
Choose how to distribute assets among heirs
Estimated Legal & Admin Fees
2%
%
Estimated legal and administrative costs (0% to 10%)
Years for Complete Transfer
5 years
years
Timeframe for complete wealth transfer (1 to 30 years)
Total Inheritance Value
₹1,00,00,000
Net after costs: ₹95,00,000
Total Estate Value
₹1,00,00,000
Estimated Taxes
₹5,00,000
Legal & Admin Fees
₹2,00,000
Net to Heirs
₹93,00,000
Distribution to Heirs
Tax Implications
₹5,00,000
Total Tax Liability
5%
Effective Tax Rate
₹31,00,000
Average per Heir
Optimization Tips
Consider gifting assets during your lifetime to reduce estate size and potential tax liability. Annual gift exemptions can help transfer wealth tax-efficiently.
About Inheritance Planning
Inheritance planning is the process of organizing how your assets will be distributed to your heirs after your death. Proper planning ensures your wealth is transferred according to your wishes while minimizing taxes and legal complications.
Key Components of Inheritance Planning
Will Preparation
- Legal Will: Document specifying asset distribution
- Executor: Person responsible for executing the will
- Guardians: For minor children if applicable
- Witnesses: Legal requirements vary by jurisdiction
Estate Distribution
- Equal vs Unequal: Decide distribution strategy
- Specific Bequests: Designate specific items
- Residual Estate: What remains after specific gifts
- Contingent Beneficiaries: Backup recipients
Tax Planning
- Inheritance Tax: Varies by jurisdiction
- Exemptions: Tax-free thresholds
- Gifting: Lifetime gifting strategies
- Trusts: Tax-efficient structures
Asset Protection
- Trusts: Protect assets from creditors
- Insurance: Life insurance policies
- Joint Ownership: Automatic transfer mechanisms
- Digital Assets: Online accounts and cryptocurrencies
Inheritance Tax Rates in India
| Relationship | Tax Rate | Exemption Limit | Special Provisions |
|---|---|---|---|
| Spouse & Children | 0% (Currently) | Full exemption | No inheritance tax in India currently |
| Parents | 0% | Full exemption | Applies to all immediate family |
| Siblings | 0% | Full exemption | No tax on inheritance |
| Other Relatives | 0% | Full exemption | Gift tax may apply in some cases |
Note: While India doesn't currently have inheritance tax, other taxes like capital gains tax may apply when assets are sold. Gift tax may apply for transfers to non-relatives exceeding ₹50,000. Always consult with a legal professional for specific advice.