Estate planning tools are classified as those that take effect during the life of a person and after death of a person.

Will and Nomination takes effect after the death of the individual.

Gift is given during the lifetime of the individual.

(Tools used post death of the individual • Will • Nomination

Tools used during the lifetime of the individual • Family Settlement • Trust • Guardianship • Joint Holding • Gift • Power of Attorney • Mutation)

Clients' financial risk tolerance - attitudes, values, motivations, preferences and experiences, is measured with a risk profile. The risk profile questionnaire helps in understanding the risk tolerance levels of a client.

SEBI Investment Adviser Regulation 16 requires that the Investment Adviser has to ensure that Clients Risk Profiling is done so as to ensure that the advise or recommended Investment product is suitable for the client.

Overseas Travel Insurance provides medical, financial and other assistance in case of an emergency during international travel. The cover will typically be provided for medical help required, delay in baggage clearance, accident and any additional cover required.

Borrower of securities is required to deposit 100% of the lending price, lending fee, value at risk margins and extreme loss margins on an upfront basis and, thereafter, daily mark to market margin (MTM) is collected.

There are two methods through which the income in post retirement years can be estimated. • Replacement Ratio Method • Expense Protection Method

In the Replacement Ratio Method, it is assumed that the standard of living remains same as just before one enters the retirement phase. This helps in defining the target much easily and more accurately after considering the effect of inflation etc.

Passive mutual funds replicate a market index like the Nifty or Sensex. These funds invest in the constituents of the selected market index in the same proportion as they are present in the index

Fund managers of passive funds do not conduct any research to pick up stocks that can be a part of their portfolios. They imitate the index composition. For example, a passively managed fund tracking Sensex will invest in the stocks of 30 companies that make up the index in the same proportion.

Where shares and securities are received from any person without consideration, the whole of the aggregate fair market value of such properties received during the year shall be chargeable to tax if the aggregate fair market value exceeds Rs. 50,000

In the above question, the debentures are given without any consideration (gift), so the whole of aggregate fair market value ( Rs 65 x 2000 debentures = Rs 1,30,000) will be chargeable to tax.

An Indian Company means a company formed and registered under the Companies Act. Indian companies are always treated as resident in India. Even if an Indian company is a subsidiary of a foreign company or it is controlled from a place located outside India, the Indian company is considered as resident in India. An Indian company can never be a non-resident.

Dividend is declared on facevalue. So 20% of Rs 5 (face value)  is Rs 1.

Dividend Yield is on the Market Price. The formula is : Dividend per share / Current market price x 100

= 1 / 60 x 100 = 1.67%

Under the Hindu law, the legal heirs who fall under Class 1 heir are:

1. Son 2. Daughter 3. Mother 4. Widow 5. Son of predeceased son 6. Father of predeceased son 7. Widow of predeceased son 8. Son of pre deceased daughter 9. Daughter of predeceased daughter 10. Son of predeceased son of a predeceased son 11. Daughter of predeceased son of predeceased son 12. Widow of predeceased son of predeceased son