With the growth in assets and properties, there is a growing need for effective management of the estate. Wealth management, asset protection and estate planning are increasingly becoming popular in India due to growth in personal assets. However, for an effective and hassle-free succession of assets, you should consider property and trust estate services. The law relating to trusts and estate in India is governed by the Indian Trust Act of 1882. Under this Act, trust is defined as an obligation annexed to the property by declaring or accepting another as a beneficiary. The definition in itself may seem confusing unless you understand the different parties under a trust. The trust consists of the author or settlor, trustee and the beneficiary. The author is the person who declares or makes the trust, the trustee is the person on whom the confidence is entrusted by the author, and finally, the beneficiary is the person for whose benefit the trust is created.
Trusts can further be classified as revocable and irrevocable trusts. This form of categorization is important to understand how to determine when a trust shall be taxed. Trusts can also be classified as determinate and discretionary trusts. There are capital gains implications whenever a trust is made revocable. Irrevocable trusts are exempted from capital gains taxation. However, all these intricacies can be best explained by a real estate professional. Property trust and estate in India is a complicated process and the trust structure created can determine how the property is protected and distributed. Estate planning and asset management have several consequences and you should only consult a professional to guide you in these matters.
If you have decided you need a trust or living trust, then you should learn about the different types of trusts and their legal implications. The trust is governed by the terms of the trust deed and you must hire a real estate consultant who can create the necessary conditions within the trust deed to offer flexibility. As an author of the trust, you must impose necessary conditions for the entitlement of benefits. Whether you are a beneficiary or a trustee, your rights to the trust can be best explained by an experienced lawyer.
Apart from local and national trusts in India, there are also offshore trusts which can be created by NRIs and people residing outside India. Cross-border movement of family members often leads to complex asset protection procedures. We offer complete guidance and support in property trust and estate protection. You can subscribe to our website today to receive regular housing news, and signup for our monthly housing law updates. For more information, you can also fill out the Contact Form here.