Beyond a Will: The Case for Family Trusts in Preserving Legacy

When it comes to succession planning, wealthy families often grapple with whether a Will alone is sufficient or if a Family Trust is better suited to safeguard their legacy. While a Will is the most common instrument, in practice it falls short in several ways, particularly for families with significant and diverse wealth. A Will only takes effect after the person who made it passes away and invariably requires probate – the legal process of validating a Will, which can take several months (typically 10-12 months) and often involves court procedures and fees. A Will can be contested in court by legal heirs or other parties, as seen in high-profile cases like the ongoing dispute over Sunjay Kapur’s ₹30,000 crore estate involving Karisma Kapoor’s children, and the inheritance claim in Ratan Tata’s estate, where a close associate initially challenged the terms before accepting them under a no-contest clause. This not only delays distribution but also makes the document a matter of public record, exposing the family’s financial affairs. By contrast, a Family Trust is a living arrangement that is established during the settlor’s lifetime and continues seamlessly thereafter, ensuring certainty and continuity without the vacuum that often arises between death and probate.

The distinction becomes even more relevant in today’s context, where family wealth is no longer limited to a single property or business. High-net-worth families often hold a mix of operating companies, financial investments, real estate across jurisdictions, philanthropic interests and even digital assets. Coordinating the transfer and management of such a complex portfolio through a Will can create multiple challenges, both legal and practical. A Trust, on the other hand, brings all of these under a single umbrella, allowing for consolidated management and structured distribution over time. Families can decide not only who will inherit, but also how and when, thereby balancing the needs of different generations and insulating the estate from external claims.

Equally important is the element of governance. While assets are moved into the Trust, control and management can still be retained by the settlor—the person who created the wealth—or the current family steward. Through carefully chosen trustees—whether family members, professionals or institutions—a Trust introduces accountability and long-term stewardship into the wealth management process. It gives the next generation clarity on roles and responsibilities while protecting them from the burden of sudden wealth transfers. This structured approach also helps reduce the risk of disputes, which are unfortunately common when estates are governed by Wills. Litigation around Wills not only locks up assets for years but can also damage family relationships irreparably.

One of the most powerful illustrations of why a Trust can be superior to a Will comes from a prominent business family we worked with, where the patriarch wanted to ensure long-term stewardship of a multi-generational business empire. A traditional Will would have simply divided the assets among heirs, potentially leading to fragmentation and disputes. Instead, the family created a Trust structure, appointing a mix of professional and family trustees to oversee the business and other investments. This arrangement allowed for structured decision-making, continuity in leadership, and protection of the estate from external claims. The founder retained control during his lifetime, while setting clear guidelines for succession and governance. This gave the family peace of mind, knowing that the legacy would be preserved and managed responsibly across generations. In our broader experience, families who adopted a Trust structure early not only enjoyed smoother transitions but also leveraged the Trust as a platform for family governance, philanthropy and long-term wealth stewardship. Several families have even used Trusts as a way to pass on values, not just assets, by embedding provisions that encourage responsible financial behavior or sustained support for charitable causes.

Ultimately, while a Will may suffice for straightforward estates, for families with large and complex wealth pools, a Family Trust scores decisively higher. It is not merely a vehicle for distributing assets, but a strategic instrument that preserves harmony, ensures continuity, and transforms wealth into an enduring legacy. For HNI families who see their wealth as more than financial capital—who view it as a responsibility towards future generations—a Family Trust provides the framework to protect, nurture and pass it on with both foresight and stability.

will have to explain in simple terms with time taken for probate and challenges. We can also include one line stating Will can be contested in the court (can ref recent cases in public domain)

We can include one sentence stating “While assets gets moved to Trust, control and management can be retained with the settlor/person who has created wealth or the present family steward