Will you inherit anything at all……..and how much you inherit is a question that you need to answer for yourself! The longer a parent lives, will the corpus be higher or lower?

Well this is a trick question actually.

If you are living in your father’s house which is appreciating (like people say real estate cannot go down in price) – the asset could be appreciating at a rate higher than the rate at which he is spending the money. So strictly speaking, even if he lives till age 125, you have an asset which is appreciating. However, the asset may go down in value if it is not well maintained.

If your father is a pension drawing person and your mother is also covered in ‘family pension’ , again your dad could leave you a lot more money IF HE LIVES LONGER.

If your parents have a self-perpetuating corpus (see Perennial Retirement Corpus) then again your parent’s will leave you much more if they live longer than if they live less.

However, if they have retired with a small corpus and have spent well, they may not have much to leave for you to inherit.

Also your interest in the corpus is also a function of:

a) how many children are going to share the corpus

b) how well the corpus is being managed and by whom

c) whether there is any need to dip into the corpus in a big way – illness, upkeep of property, ..etc.

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  1. while thinking of retirement corpus adequacy for longer lifespan in retirement years ,the simple calculation could be the retirement year(last yr.)’s living expenses * no.of yrs. of retirement living esimated = the min. corpus (sum of assets cash equivalents, real estate (if in good city and locality) , the gold ), if we consider the rate of return would be equal to the inflation in the retirement yrs.however , the medical expenses , in case of terminal disease could be a problem- of course , one may go earlier and the balance would be sufficient for remaining one! this is just a thought or you can say, a wishful thinking!

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