Editorial
Knowledge, Plainly Written
Long-form notes on the questions our individual and NRI clients ask most often. Written so you can decide whether you need a lawyer at all, and what to ask if you do.
Who can be a trustee under Indian law?
Understanding Who Can Be a Trustee Under Indian Law When a grandfather sets aside property for his grandchildren's education, or when a business owner creates a structure to preserve family wealth across generations, a trustee under Indian law becomes the guardian of those intentions. This person holds legal ownership of trust assets and manages them solely for the benefit of others. Many families underestimate the importance of selecting the right trustee . An improperly…
Read article · 22 min →How are disputes between beneficiaries and trustees resolved?
Understanding Trust Disputes in India Imagine a family trust holding ancestral property worth crores, set up decades ago by your grandfather. As a beneficiary, you believe you're entitled to certain distributions. Yet the trustee refuses to share accounts, delays distributions, or sells assets without consultation. You wonder: Do I have legal rights? Can I challenge these actions? Where do I begin? Trust disputes India represent one of the most legally intricate and…
18 min read →What are the benefits of setting up a family trust?
When your father built the family business over three decades, he never imagined his children would fight in court over who owns what. He didn't know that without proper succession planning , his life's work could be torn apart by disagreements, creditor claims, or tax disputes. This happens in thousands of Indian families every year. Assets that took generations to build get divided, disputed, or diminished because no proper structure was in place. A family trust is a legal…
23 min read →How can a family trust be created in India?
Understanding Family Trusts in India When a successful entrepreneur from Mumbai passed away unexpectedly, his family faced a bitter legal battle over his assets. His wife, two children, and elderly mother each claimed rights over the property and business. The dispute dragged on for years, draining both finances and relationships. A properly drafted family trust could have ensured smooth transfer of wealth, protected assets, and preserved family harmony. In India, wealth…
21 min read →Can NRIs create trusts in India?
Can NRIs Create Trusts in India? Complete Legal Guide Priya moved to the United States fifteen years ago, built a successful career, and now owns property in both California and Mumbai. She wants to ensure her ancestral house in India passes smoothly to her children, avoid probate complications, and protect family assets from future disputes. Her financial advisor suggested creating a trust, but she's confused: can she, as an NRI , legally establish a trust in India? Will…
19 min read →How can assets be transferred to a trust?
What Is a Trust and Why Transfer Assets to It? A trust is a legal arrangement where one person (the settlor or author) transfers ownership of assets to another person (the trustee ) to hold and manage those assets for the benefit of certain people (the beneficiaries ). Under the Indian Trusts Act, 1882 , a trust is created when the settlor indicates an intention to create a trust, identifies the trust property, and specifies the beneficiaries. The trust comes into existence…
17 min read →What is the difference between a will and a trust?
When someone passes away, questions about property distribution, savings allocation, and asset management can trigger confusion and family disputes. Many Indians assume creating a will is sufficient for estate planning, while others hear about trusts and wonder which option suits their needs. Both are essential estate planning tools that serve distinct purposes under Indian law, and understanding the will vs trust distinction is crucial for effective succession planning and…
19 min read →Can a trust be revoked or dissolved in India?
Understanding How to Revoke a Trust in India Whether a trust can be revoked or dissolved in India depends primarily on the type of trust created and the specific provisions outlined in the trust deed. The primary legislation governing private trusts is the Indian Trusts Act, 1882 , which provides the legal framework for creation, management, and termination of trust arrangements. Types of Trusts: Revocable vs. Irrevocable The ability to revoke a trust in India hinges on a…
16 min read →What happens to trust assets after the death of the settlor?
What Happens to Trust Assets After the Death of the Settlor? When a grandfather passes away leaving behind a trust after death of settlor holding real estate, investments, and bank accounts, families often face troubling questions: Does the trust dissolve? Who controls the assets? Can beneficiaries immediately claim their share? These concerns carry direct legal and financial consequences under Indian law. Many families incorrectly assume that a settlor's death automatically…
19 min read →Can trusts be used for succession planning of family businesses?
Why Family Business Succession Planning Matters in India When the founder of a second-generation manufacturing business in Pune passed away without a clear plan, his three sons spent five years fighting in court over control of the factory. The business lost key contracts, employees left, and customers moved to competitors. By the time a settlement was reached, the enterprise had lost half its value. This scenario repeats itself across India with alarming regularity. Family…
25 min read →What are the duties and liabilities of trustees?
Understanding Trustee Duties and Liabilities in India When your family creates a trust to protect property for future generations, or when you accept responsibility for managing a charitable institution, you step into a position of serious legal accountability. A recent case from the Bombay High Court illustrated this perfectly: a trustee who borrowed trust funds for personal business faced not only removal but also criminal prosecution for breach of trust. This is not rare.…
21 min read →Can a trust own property in India?
Imagine a grandfather who built a sprawling farmhouse and wants it to benefit his grandchildren forever, protected from future disputes, partitions, or financial claims. Or a philanthropist who wishes to create a charitable institution that operates independently from her personal estate. In both scenarios, the legal question is the same: can a trust actually own land, buildings, or other immovable property in trust in India? The answer is yes, but with important legal…
15 min read →How can a trust protect family wealth across generations?
Why Generational Wealth Planning Matters in India Your grandfather built a textile business from nothing. Your father expanded it into real estate and investments. Now, you manage a portfolio worth several crores. But have you asked yourself: will this wealth reach your children without disputes, taxation battles, or family litigation? Most wealthy families in India lose significant assets within three generations, not due to poor investments, but due to poor legal…
17 min read →What is a discretionary trust and when should it be used?
What is a Discretionary Trust and When Should It Be Used? When a successful Mumbai businessman passed away, his children fought over inherited property for 12 years. Court battles drained crores in legal fees. The family business collapsed. Their mother kept asking: "Could this have been prevented?" Yes. Through a discretionary trust India structure, many families now protect wealth across generations, avoid bitter succession disputes, and maintain financial privacy. Yet…
23 min read →Can beneficiaries challenge the actions of a trustee?
Understanding Beneficiary Rights in Trust Under Indian Law Discovering that a trustee is selling trust property below market value, refusing to share financial statements, or making unauthorized investments can leave beneficiaries feeling powerless. Many assume trustees hold absolute authority and that beneficiaries have no recourse. This widespread misconception costs families property, inheritance, and peace of mind every year. Under the Indian Trusts Act, 1882 ,…
23 min read →What is the role of a settlor in a trust?
Who is a Settlor in Trust? A settlor in trust is the person who creates the trust by transferring property to trustees for the benefit of designated beneficiaries. Also called the trust creator , author, or founder, the settlor initiates the entire trust structure and defines its purpose, terms, and governance. Under Section 3 of the Indian Trusts Act, 1882 , the settlor is the individual who declares confidence in trustees and transfers assets to be held for beneficiaries.…
16 min read →What is the difference between a revocable and irrevocable trust?
What is a Trust Under Indian Law? Under the Indian Trusts Act, 1882, a trust is created when a person (the settlor) transfers property to another person (the trustee) to hold and manage for the benefit of specified persons (the beneficiaries). The trust deed is the legal document that establishes this arrangement and defines how the trustee must operate. A trust involves three key parties: Settlor: The person who creates the trust and transfers assets into it. Trustee: The…
19 min read →How can business succession be planned through trusts?
Why Business Succession Planning Matters in India Your father built a manufacturing business over 40 years. Now he is 72. You and your two siblings work in the company. But no one has ever talked about what happens when he is no longer around. Who will control the business? How will shares be divided? Will the company survive family disputes? This silence is not uncommon. Business succession planning is often avoided in Indian families until it becomes too late. When a…
21 min read →What are the legal requirements for a valid trust deed?
What Is a Trust Under Indian Law? A trust is a legal arrangement where one person (the settlor) transfers property to another person (the trustee) to hold and manage for the benefit of a third person (the beneficiary). Section 3 of the Indian Trusts Act, 1882 defines a trust as "an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner." Three essential elements make a trust: Settlor : the person creating the…
15 min read →What is a private family trust and how does it work in India?
What Is a Private Family Trust in India? A private family trust India is a legal arrangement where a person (the settlor) transfers ownership of assets to trustees, who hold and manage those assets for the benefit of specific family members (beneficiaries). This structure provides a legally recognized framework for wealth preservation, succession planning, and asset protection across generations. Unlike a Hindu Undivided Family (HUF), which is based on coparcenary rights…
24 min read →