How to Write a Will, How to establish a Trust

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Estate Planning
A simple way to invest in equity and create wealth
CONCERNS
Concerns – Family vs. Business
Preservation of assets incase ‘generation next ‘ is not as per expectations
Preserve assets and Reputation of Family
Bring Love/ Bonding / Togetherness in the Family
Business succession (Management & Ownership)
Sustainability of Family and Business till Perpetuity
Upkeep, education, marriage, etc of ‘generation next’
Fund growth without loosing control on my assets
In India
Judicial and legal framework not conducive for speedy resolution
Inter‐generational transfers not planned systematically
Lack of uniform laws for geographically diverse assets
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WHAT IS ESTATE PLANNING?
Estate planning deals with leaving your wealth back to your heirs.
Tools for Estate Planning – Nominations, Will, Trust, Power of Attorneys
Estate Planning minimizes confusin and emotional strain on beneficiaries of
the estate
It ensures your assets are distributed in the manner you want to distribute
It helps to preserve your assets
It ensures minimum or no court involvement
It helps to protect your dependents
WHAT IS ESTATE
Your "estate" consists of all property owned by you at the time
of your death, including:
Real estate
Bank accounts
Stocks and other securities,
Life insurance policies,
Personal property such as automobiles, jewelry, and artwork
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TOOLS
Wills
A legal declaration of the intention of a testator
with respect to his property, which he desires to
be carried into effect after his death
Trusts
A Trust means vesting or placing property under
the control of a person in the confidence that he
will hold it for the benefit of a third person and/or
himself. Depending on the end objective, a trust
can be public, private or charitable
Family Council
A working governing body elected by the Family
among its members to deliberate on family and
Family business
STEPS OF ESTATE PLANNING
Family Information
Financial Information
Goal Setting
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STEPS OF ESTATE PLANNING
Legal and Tax Analysis..
Plan Recommendations..
Prepare Documents
STEPS OF ESTATE PLANNING
Review Documents
Execute Documents …
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WILLS V/S TRUST
• Comes in to existence post demise of the will
creator. • Vehicle to pass on the wealth in a
T R U S T S
WILL
planned manner / over a period of time.
• Way of passing ownership of wealth to Future
Generation. Invariably leads to fragmentation • It provides for management of the estate
during one’s lifetime & also provides for
distribution & management of wealth post
• Does not allow control of end use, monitoring etc. demise in a planned manner
• Probate formalities are compulsory in almost all • Provides control for distribution and
cases monitoring
• Contestability of Will is easy • NIL probate required
• Low Confidentiality Structure: Its becomes a public • Contestability is difficult
document during probate
• High Confidentiality Structure
• Can be revisited unlimited no of times, only last
tested will is accepted by court of law
• Bankruptcy Remote structure: : If assets
are unencumbered
• Not a Bankruptcy Remote Structure
• Cost more to prepare, fund and manage
• Cost of Will is lesser than Trust, Cost to probate a but avoid cost and hassles of probating.
will can be substantial
DIVERSE OBJECTIVES OF A FAMILY TRUST…
Succession Planning: Preservation and growth of Family
Wealth for future Generations
Separate Business Assets from personal assets –
Bankruptcy Remote
Reduction in Administrative Hassles
Ring fencing family wealth and leveraging
Management of Wealth - Extremely Relevant for NRI for
management of Indian Assets.
Confidentiality of Financial Transactions
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TYPES OF TRUST…
Public Trust
Members of an uncertain and fluctuating body and the
Trust itself is of a permanent nature and indefinite
character.
Private Trust
The beneficial interest is vested absolutely in one or more
individuals or beneficiaries who are ascertainable.
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FAMILY TRUST
Cash Deposits,
Securities, Real estate,
loans, Investments,
INVESTMENT ADVISORS
(Individuals/ Holding Company)
TRUSTEE
Settlor, Family Members
SETTLOR Ownership & administer the trust
SETTLOR
(Lead Family Member)
(Lead Family Member) Achieve objectives as per trust deed.
Draft Trust Deed
Define Trustees & Beneficiaries
Gift of Assets
PRIVATE
TRUST PROTECTOR
PROTECTOR
TRUST
Distribution of benefits as per trust deed
Distribution of benefit as per trust deed
BENEFECIARIES
BENEFECIARIES BENEFECIARIES
BENEFECIARIES BENEFECIARIES
BENEFECIARIES
WHO NEEDS ESTATE PLANNING?
If you own anything or have people who rely on you it is a good idea to have
a plan. The more complicated your personal and financial affairs, the more
important it is. You should also review your estate plan at least once every
three years and whenever your circumstances change, such as:
getting married, living with a partner, separating or getting divorced
as soon as you have children or step-children
buying real estate or other valuable assets
buying, selling or operating a business
if you have family members with special needs or children who are
vulnerable
if you set up a family trust or company
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For any further information, please contact:
Mr. Gajendra Kothari, CFA, CAIA, ICFA
M:+91 98678 24321
E: gajendra.kothari @eticawealth.com
THANK YOU
Ética Wealth Management Private Limited
501, T-39 Sunshine Building,
Shastri Nagar, Lokhandwala Complex Road,
Andheri West, Mumbai - 400 053
Landmark: Suburban Diagnostics, Near Lokhandwala Circle
T: +91 22 2632 9644
+91 22 4264 8740
E: info@eticawealth.com
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