Active Stocks
Fri Apr 12 2024 15:57:45
  1. Tata Steel share price
  2. 163.50 -1.00%
  1. NTPC share price
  2. 362.00 -0.32%
  1. ITC share price
  2. 430.10 -1.56%
  1. HDFC Bank share price
  2. 1,518.90 -1.10%
  1. State Bank Of India share price
  2. 766.75 -1.57%
Business News/ Money / Personal Finance/  How to ensure fair distribution of assets in an estate plan?
BackBack

How to ensure fair distribution of assets in an estate plan?

As a long-term step, you may consider preparing a will which can be customised to your preferences.

Your will’s executors should be immediate family members or trustworthy friends.Premium
Your will’s executors should be immediate family members or trustworthy friends.

I have three sons, all of whom are married and have children. My eldest son and his family, who have been residing in the US, are now returning to India. The relations between all my family members are cordial. I now want to divide my estate (primarily my investments in listed stocks, mutual funds and some cash) proportionately in such a manner that each son’s family (especially my grandchildren) get one third share, however, I also want to retain control of my estate in my lifetime. How do I do this?

—Name withheld on request

You can consider a two-step approach. As a long-term step, you may consider preparing a will which can be customised to your preferences. The different bequests of your estate can be factored in your will, and will come into effect after your lifetime, allowing you maximum flexibility. Your will’s executors should be immediate family members or trustworthy friends.

Depending on the exact jurisdiction involved, the probate (or a court driven verification process of your will) may be involved.

The other step you can consider is to set up a private trust. This can be set up during your lifetime itself, and the assets moved into it over time (or even immediately after it is set up).

Depending on how you structure it, you can consider becoming a managing trustee of a discretionary irrevocable trust, and have the chosen family members as beneficiaries. You can control the trust in this manner, and distribute benefits to them as you deem fit.

As you have three sons, you can speak with your attorney and explore the pros and cons of one trust for all three sons, or separate trusts for each of them. Separate trusts may also help you customize the trusts for each son’s circumstances, and transfer control to them post your lifetime or sooner.

Rishabh Shroff is a partner (co-head at private client and head at international business development) and Chirag Shah is principal associate, Cyril Amarchand Mangaldas.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 28 Feb 2024, 08:26 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App