How to plan inheritance for children from two marriages

I am a 62-year-old industrialist from Delhi. I have two adult sons (aged 38 and 34) from my first marriage and a 15-year-old daughter from my second marriage. My estate includes commercial real estate worth around ₹60 crore in Delhi NCR, plus financial investments of ₹25 crore. I want to ensure my second wife and younger daughter are financially secure, while also giving my sons from the first marriage their fair share. How can I balance these interests using wills or family trusts so that disputes don’t erupt between the two sides of the family?

—Name withheld on request

Given your family dynamics and estate size, a well thought-out, clear plan is essential to avoid disputes. Using both a will and a family trust helps define your wishes and manage assets strategically for all heirs.

Role of wills

A will is the foundational document for estate planning that formally states your wishes regarding the distribution of your assets after your passing. It can be used to address your specific situation, taking the following steps: i) Make a list of all assets, family members and beneficiaries; ii) Clearly specify which assets will be distributed to each beneficiary; iii) Appoint an executor; iv) Include a residuary clause to ensure that any future or inadvertently omitted assets are also covered; and v) Ensure the will is signed by at least two witnesses. The witnesses should not be beneficiaries named in the will; vi) Registering a will in India is not mandatory for its legal validity. However, it offers several significant advantages and is highly advisable.

Family trust

A will distributes assets, but a family trust can hold and manage them long-term, giving more control and flexibility. For your wife and daughter’s financial security, a private discretionary trust can hold part of your investments, professionally managed to provide them ongoing income, independent of your sons. A separate trust can own commercial real estate (stamp duty may apply), with professional trustees, ensuring no single child controls the property and reducing disputes. You can set clear distribution rules—e.g., sell and divide proceeds equally/as per your decision or distribute rental income in a specific ratio among beneficiaries.

Combining will and trust

Combining a will and a family trust gives you the best of both worlds. The will provides a clear legal framework for asset distribution post lifetime, while the trust acts as a long-term asset management and protection tool. It helps to prevent disputes by giving clear instructions and using professional oversight, support fair distribution by letting you decide what “fair” looks like for each heir, keep control through trust rules that guide asset use even after your lifetime.

Given the value and complexity of your estate, it is best to work with an experienced estate planning, legal and financial advisor to structure and draft the right documents so your wishes are executed smoothly and without conflict.

(Neha Pathak is executive group vice president, head of trust and estate planning, Motilal Oswal Private Wealth)