Purpose of Estate Planning
Estate planning ensures efficient management of assets during one’s lifetime and
enables smooth transfer of wealth to the next or future generations.
A well-structured estate plan avoids legal complications, family disputes,
and delays in asset distribution.
Asset Management
Efficient and structured management of assets located in India.
Generational Transfer
Smooth and planned transfer of wealth to current and future generations.
Legal Protection
Minimises disputes, delays, and litigation among legal heirs.
Estate Planning through Private Family Trust
A private family trust is one of the most effective tools for estate planning.
The settlor establishes a trust to hold assets for the benefit of family members,
while retaining flexibility and control during their lifetime.
Issues with WILL-based Estate Planning in India
- Probate or Succession Certificate from Court is usually required
- Legal process may take 12 to 36 months
- Distribution remains pending until court process is completed
- All legal heirs must participate in complex court proceedings
- WILLs are often challenged by heirs, leading to disputes
- Frequent amendments to WILL require fresh legal procedures
- No robust institutional framework for estate administration in India
Advantages of Estate Planning through Trust
Legal Strength
Trust Deed is a strong legal document and generally not open to challenge.
Provisions can be revised with ease.
Administration
Trustees manage and distribute assets efficiently without court intervention.
Planned Distribution
Assets can be distributed to current or future generations as per settlor’s intent.
Control & Flexibility: The settlor may retain control over trust assets and income
during their lifetime without relinquishing ownership immediately.
Taxation of Trust
- Trust income is generally tax efficient under Indian tax laws
- In most cases, tax liability mirrors that of the settlor’s personal taxation
- Proper structuring avoids unnecessary tax leakage
Professional Trustee Services
Reputed financial institutions in India provide professional trustee services,
ensuring protection of beneficiaries’ interests, transparent administration,
and long-term continuity of the trust structure.