India is often described as a country that functions like a subcontinent. In estate planning, this description reflects a legal reality.
Personal laws governing succession vary by religion. Marital statutes influence property rights. Geographic location can determine which civil code applies. Even the classification of property, whether self-acquired, ancestral or joint family, can materially change outcomes.
It has been observed that these factors rarely operate in isolation. A recent engagement with an interfaith business-owning couple illustrates how layered these considerations can become.
When the couple approached us to structure their estate, they expected discussions around assets, valuations and tax efficiency. Instead, we began with questions about their marriage. In which state had they married? Under which law had the ceremony been solemnized? How many children did they have? Which religion were the children recorded under, and how was this documented with the registrar and at school? Was there any joint family or ancestral property on the husband’s side?
These were not just incidental questions; they determine the legal framework that often governs succession.
One country, multiple succession frameworks
India is among the most diverse jurisdictions in matters of personal law. While Hinduism is often perceived as a single faith, practices affecting inheritance historically varied across regions. The effort to introduce uniformity culminated in the Hindu Succession Act, 1956, which, subject to amendments from time to time, continues to govern Hindu succession.
Despite this effort, the act recognizes three distinct types of inheritance:
- Self-acquired property
- Joint family property
- Ancestral property
While a Hindu is generally free to leave self-acquired property through a will, joint family and ancestral property are governed by separate rules shaped by the applicable school of Hindu law and regional considerations.
Marriage law can also influence property rights. Where a marriage is solemnized under the Special Marriage Act, 1954 rather than the Hindu Marriage Act, 1955, as in this couple’s case, it may result in the loss of certain rights in joint family property from the date of marriage, depending on the applicable school of Hindu law. These implications are rarely examined at the time of marriage and often surface only during estate planning.
It is equally important to distinguish between intestate and testamentary succession. Intestate succession applies where a person dies without a Will. Testamentary succession applies where a valid Will exists. The Hindu Succession Act, 1956, primarily addresses intestate succession, particularly in relation to joint family and ancestral property.
Testamentary succession across most communities is governed by the Indian Succession Act, 1925, subject to specific exceptions. This act also covers succession among any Indian to whom customary or religion-specific laws do not apply. Muslim succession continues to operate under its own religious law framework, with variations across sects and regions. Christian succession is also governed by its own laws.
Going back to the above couple’s example, geography added another layer of complexity. The wife was Christian and originally from Goa, and the marriage had taken place there. This raised an additional layer of consideration, as Portuguese civil law continues to apply in certain respects in Goa. Accordingly, it was necessary to examine whether those provisions would be relevant in their case.
Besides, their residential and agricultural properties were spread across different states. As per the Indian Constitution, land falls within the legislative domain of individual states. This required a review of stamp duty and registration laws in each state, as well as the probate fee structure of the relevant high courts, before an appropriate plan could be formulated. Even for business shareholding, it was important to determine whether they intended the next generation to act as owner-managers or owner-investors.
What initially appeared to be a straightforward inter-faith estate required analysis across multiple legal systems shaped by religion, marriage statute and geography.
By this stage, the couple were understandably overwhelmed. Rather than attempting to address every structural layer simultaneously, we recommended beginning with a foundational step: putting clear Wills in place.
In our experience, the process of drafting Wills compels families to organize their personal, legal and financial information in a structured manner. The clarity achieved during this exercise provides the groundwork for more advanced structuring. Once the base is in place, trusts and other vehicles can be introduced in a considered and phased manner.
The larger lesson
Estate planning in India requires navigating multiple, overlapping legal frameworks. Governance choices within a family business add another dimension.
For many families, the complexity does not arise from the volume of assets alone. It arises from the interaction of legal identities and structural choices. Hence, estate planning cannot be approached as a template exercise.
Ashvini Chopra, executive director & head – family office solutions at Avendus Wealth Management.