Estate & Succession Planning

Written by Emkay Wealth Management, Research Team | 28 Dec 2021

Estate and succession planning is the process of anticipating and arranging for the disposal of estate during and after one’s lifetime. In absence of a succession plan, the assets of the deceased would be distributed as per the applicable religious laws amongst the legal heirs.

1.Drafting a will

Will is a legal document that comes in play on the demise of the testator. It carries the wishes of an individual regarding distribution of his/her estate.

2.Gifts during lifetime:
Gift is transfer of movable or immovable property, made voluntarily, during one’s lifetime and with- out consideration, by the donor and accepted by donee. If the gift is received from any blood relative, it will not be taxable.

3.Formation of Private Trust:
A Trust is a relationship whereby property is transferred by one party(Settlor) to be held and managed by another party(Trustees) for the benefit of third party (Beneficiaries), governed by the Indian Trust Act, 1882. Some of the advantages of a PrivateTrust are:
•Multi-generation succession and provision for wishes beyond lifetime of Settlor
•Trust can be structured to control the timing and amount of distributions
•Provide for dependent relatives and to provide for ongoing financial management
•Protection of assets from outside claims and from disputes within the family
•To hold the shares of company for business continuity & for delinking ownership from management
•Avoids probate
•Privacy protection
•Inheritance tax planning and avoid forced heirship rules for NRIs

4.Charitable Trust :
CharitableTrust is setup for philanthropy aspirations for the benefit of public at large. It enjoys income tax benefit on the income of the trust and tax benefit to the donors on the donation made by them.

5.Family Business Succession:
Family business succession is the process of transitioning the management and the ownership of the business to next generation of family members. The family component plays a crucial role here and needs to be effectively integrated in the transition process.

6.Obtaining Probate/Succession Certificate:
Probate establishes the validity of a Will in Court. In absence of a Will, a succession certificate is required to be obtained from the Court for transferring the assets of a deceased.
For any queries or assistance kindly contact us at estate@emkayglobal.com

 

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Estate & Succession Planning

Estate And Succession Planning

Our approach of creating solutions that best match your unique goals extends to this wealth management stage. We help you device a strategy that ensures your wealth is transferred to stakeholders of your choice at an opportune time. This isn’t limited to will creation but also advisory related to setting up trusts, reorganising business interests, taxation, superannuation, and gifting.

This is an equally important stage as the previous two stages in your wealth management journey since it consolidates information and knowledge for your heirs, avoids inheritance disputes in the family, and ensures your wealth grows with the right stakeholders for years to come.

Emkay Estate Planning Services

Drafting Will

Will is a legal document that comes in play on the demise of the testator. It carries the wishes of an individual regarding distribution of his/her estate.

Gifts during lifetime

Gift is transfer of movable or immovable property, made voluntarily, during one’s lifetime and without consideration, by the donor and accepted by donee. If the gift is received from any blood relative, it will not be taxable.

Charitable Trust

Charitable Trust is setup for philanthropy aspirations for the benefit of public at large. It enjoys income tax benefit on the income of the trust and tax benefit to the donors on the donation made by them.

Family Business Succession

Family business succession is the process of transitioning the management and the ownership of the business to next generation of family members. The process of business succession includes family component like collective sentiments of the family members, desire for unity, fair share to family members, etc. The family component needs to be handled effectively in a manner that it least affects the business and the strives to maintain a common spirit within the family.

Succession Planning for NRIs

Families with NRI children would need to consider the inheritance laws of the country where the children reside so that the children can inherit the wealth in the most efficient manner. Indians who have acquired assets in foreign country will need to create a succession plan for their offshore assets keeping in mind the succession laws of the other country.

Obtaining Probate/Succession Certificate

Probate establishes the validity of a Will in Court. In absence of a Will, a succession certificate is required to be obtained from the Court for transferring the assets of a deceased.

Formation of Private Trust

Among other things, formation of a Private Trust provides for dependent relatives and for ongoing financial management. It also helps protect assets from outside claims and disputes within the family. The Trust can be structured to control the timing and amount of distributions