Will vs Trust: Which is the better option for your succession planning?

He envisioned his estate planning in india to a scale where Ragu and Shyam would inherit and run it successfully and make way for his retirement. In this endeavour he had been taking loans, but the family was not well apprised about the whereabouts. There could be serious disputes amongst family member over your estate that can devastate the peace and happiness you’ve always sought for your family. Estate Planning simply refers to passing down of your assets from one generation to another. The Delhi High Court has held that a duly probated Will by a Foreign Court of competent jurisdiction is a conclusive proof of the legal character throughout the world.

In times when your family may be run down emotionally, financial and legal grief is the last thing you want them to undergo. With prudent estate planning long-term financial interest of your loved ones can be ensured, and legal rigmarole can be minimised. Asset transfer is the process by which the assets under the control and ownership of a person are transferred to some other person. Asset transfer with respect to Will is the process by which the assets are transferred to the person so wished as named in the Will that is to any person weather a family member or a distant person.

Estate Planning is the creation of a systematic plan for the management, protection & succession of your estate, during and after your lifetime. Estate planning can also include arrangements for long-term care and incapacity, such as a living will or advance healthcare directive, which can help to ensure that your end-of-life care is carried out according to your wishes. • By assisting those who wish to include Ananda as a beneficiary of their estate planning. 2) Make a gift of property, such as stocks, real estate and/or the whole or partial interest in a life insurance policy.

Estate planning services in India have gone to a new level Video taping of wills, making of trusts and even a probate is the new way. Where the intestate has left neither lineal descendants, nor parent, nor brother, nor sister, his property shall be divided equally among those of his relatives who are in the nearest degree of kindred to him. Another option to consider is transferring the property via a gift deed. “A gift deed is a document that states and records the act of providing a gift from the giver to the recipient .

In the absence of a will, the distribution of the estate is governed as per laws of the nation. For Christians, Jews and Parsis it is as per the Indian Succession act 1925. If you are a Muslim your property will be divided according to Muslim Personal Law. You have the family settlement where property and assets are divided in an amiable manner. It can include cash, clothes, jewelry, cars, houses, land, retirement, savings accounts and so on. Whereas the Will has a one-point objective to provide directives on the manner in which your wealth should be distributed amongst your loved ones after your lifetime.

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He began to siphon funds from his successful venture to unsuccessful ventures in an attempt to bring them around. But that didn’t help either, and as a consequence his successful business too was overthn. I am a lawyer by qualification and have nearly two decades experience in advising high net-worth families. My colleague Ms. Anuradha Shah and I took charge of Warmond about 6 years back.

REIT offer exposure to real estate market without a lot of the hassles that usually come with it. Being into the Private Bank business for over a decade, I am very happy to find a in-depth, well recognised, course on Trust and Estate planning from AAFM India. • By providing guidance and direction in the area of charitable estate gift planning. I own and possess certain properties and assets on the date of this Will which have been listed in Schedule A which form part of the Estate.

Funds not needed can be turned over to the beneficiary at 21, or at a later age specified in your Will. Intestate succession refers to when a person dies without leaving a valid will and the spouse and heirs will receive the possessions by the laws of descent and distribution and marital rights in the estate which may apply to a surviving spouse. Collectively these are called the laws of intestate succession. From a legal perspective, the will should overwrite any nominations made for financial assets such as share demat accounts or mutual funds. In India, a traditional way of estate planning has been setting up Hindu Undivided Family which is a distinct unit for tax policy as per the provisions of section 2 of the Indian Income Tax Act. However, it may be noted that after a property gets apportioned to an HUF, every coparcener has equal right to it and partition of HUF land has often led to clashes and court cases.

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An estate plan can be as simple as having a will and naming a beneficiary, or as complicated as having several trusts for different purposes in addition to the will. Estate planning involves making plans for the transfer of your estate after death. It can include cash, clothes, jewelry, cars, houses, land, retirement, investment and savings accounts, etc.

In respect of heirlooms which have sentimental value, not only is it important to mention the heir to a specific heirloom, it may also be wise to mention why such person should receive it. Thus, to conclude, a Will is a written declaration of the intention of the person making the Will i.e., the testator which ensures that the property devolves on the individuals so named. Especially in today’s times when the concept of joint family is slowly and gradually reducing, one can even prefer a person out of the family to inherit his/her property after the death.

Our experts handle your planning needs to ensure that your estate goes into safe hands and is managed in accordance with your terms and wishes in a hassle-free manner. You don’t have to worry about your legacy ending up in wrong hands. With our services of estate planning in India, we ensure your wealth reaches your loved ones safely. As an estate plan has a broad scope it entails devising a collection of legal and non-legal documents. On the other hand, a Will has a narrow scope as it is just one of the legal documents under an estate plan that is used to capture your intention on how you wish your wealth to be distributed post your lifetime. Hence, whether it is Mr. A or Mr. B both require estate planning, the major differences in their estate only being the value and composition of the estate that may warrant a simple or complex level of estate planning.

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Share a wealth of privileges and tailor-made solutions with your family. Most experts interviewed also point out that wills could be very easily challenged in authenticity by estranged or unhappy heirs leading to long-drawn and expensive litigation. Like everything about India, there are multiple laws that can apply, 45 according to Ashvini Chopra of Universal Trustees, in a situation where someone dies without a valid will. Following the initial set-up, a yearly review of a will is important, according to Haribhakti, because it helps to take care of new needs or situations which might have arisen – for example, an unanticipated inheritance or a windfall.

The sooner you plan, the better it is, so the right time to secure our family’s future is NOW. Will and trust both are the effective tools of estate planning, knowing your needs and being aware of tools are the best way for you to create an effective estate plan. The taxaton of a trust depends on the structure you create i.e. specific or determinate. In certain structures like specific trust the income generated by the trust is taxed at beneficiary level while in some at maximum marginal rate. The benefits of creating a trust cannot be analyzed based on the taxation of the income generated by the trust.

However, if you are a Muslim, the Islamic Law on Succession—Sharia Law, permits you to Will away only 1/3rd of your property while 2/3rd is retained by the family, irrespective of a Will to the contrary. This restriction can be waived by all members of the family, in favour of the testator, permitting him to Will away his property as per his desire. The exception to the above rule is the state of Goa, where the Portuguese Uniform Civil Code applies, making it mandatory for all religions to follow a common law regarding marriages, divorces, and adoptions. There is a Parsi Law, a Christian Law, and a Special Marriage Act for spouses following different religious faiths, etc.

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There are certain declarations pertaining to property and beneficiaries which have been enumerated further for explaining how various declarations are made within a will. Every individual, not being a soldier employed in an expedition or engaged in warfare, or an airman so employed or engaged, or a marine at sea shall be capable of executing his own will. No individual is permitted to make a will in a state of mind which is altered due to intoxication or illness or from any other cause which renders him incapacitated mentally. Individuals who suffer from certain disabilities must be provided with sufficient assistance while making a will and must know exactly the repercussions of doing so.

By the end of this interactive session, I will help you to plan yours and your family’s finances to ensure a better future. Make sure your money reaches your loved ones with estate planning. “Financial hospital is a super – speciality facility rendering its services with a personal touch to its clients marketing it unique. The doctors are well trained in wealth care…” In the same manner the property shall go to the surviving lineal descendants who are nearest in degree to the intestate, where they are all in the degree of great-grandchildren to him, or are all in a more remote degree.

A trustworthy lawyer must be named as the executor when close relatives or friends are unable or unwilling to carry out a Will. A executor must be above the age of 18 years and of sound mind. In simple words, Will means a legal declaration of a person’s wishes regarding the disposal of his/ her property or estate after death. Any person of sound mind and over the age of 18 can make a Will. Any language may be used to execute a Will, and there is no specific format required by Indian law. It can be written on simple paper without needing to be notarized or executed on stamp paper.

Having a Will is thus imperative so that the property is divided amongst the individuals so wished. A Will ensures that a person’s property is given to the preferred family member or even a distant person not belonging to the family. It is a great way of planning the devolution of property after the death which not only eliminates the conflicts and issues as to who will inherit after the death but also ensures the distribution of the property as per the wishes of the owner. This situation is referred to legally as “dying intestate.” A will prevents intestate succession and significantly lowers the likelihood of legal action and enduring animosity among family members.

This is definitely relevant to the industry as Financial Planning is incomplete without Estate Planning. The Executor may reimburse himself from my Estate reasonable expenses incurred towards the completion of the execution and probate formalities. I am of good health and of sound mind and capacity and I am making this Will out of my free will. A Will should be handled by a lawyer to be assured that it is legally valid. The testator should keep the will at a place where it can be easily found, such as in the cupboard as well as a copy of the Will should be left with the legal advisors. Another solution for married couples is to keep the wife’s Will in the husband’s safe deposit box, and his Will in hers.

Estate planning is the act of preparing for the transfer of a person’s wealth and assets after his or her death. Assets, life insurance, pensions, real estate, cars, personal belongings, and debts are all part of one’s estate. Estate plans must be written, signed, and notarized by the person who owns the estate. Estate planning ensures that all your assets – physical, financial and online – are inherited by the people to whom you want them to be transferred after your demise.

This should include the net accumulation over the last two to three years, as well as what it is likely to be on an ongoing basis. The person also needs to lay out the structure of the family and identify the potential heirs. There are a number of ways of going about transferring wealth to the next generation. These are simple legal declarations stating how the person wants his or her estate divided after their demise. Those who are aware of estate planning know about having a Will written and registering/probating it with the help of a lawyer to do it. Here, we will discuss various other options available for planning your estate.

• Hence, a will can be revoked or altered by the maker prior to his or her demise provided that they are mentally competent to do so.
• Many think that only those who are affluent should do estate planning.
• If you have named a family member or friend, be sure to give them authorization to seek professional help in settling the estate.
• In such circumstances, you might want to seek professional legal advice.
• So, plan your legacy effectively with our help and give your family a reason to smile.
• The testator should keep the will at a place where it can be easily found, such as in the cupboard as well as a copy of the Will should be left with the legal advisors.

It may be a good idea to have two to three copies of the Will. As a practical matter, the best possible time to take care of your Will is now. Do the best job you can, secure in the knowledge that additions or revisions can be made in years to come.