Trust & Succession planning
Trust & Succession planning
Once upon a time, a man of destiny met a woman of substance. He was a brilliant CXO, she a beautiful daughter of a powerful man. They fell in love. It seemed like a match made in heaven. The marriage didn’t last long, but the post-marital bitterness continues till date. Many arms of the law and order machinery got involved. Accusations were met with counter accusations. Alimony debates added pungency to the bitterness. And the former sweethearts are now actively attempting to sabotage each other’s future.
This is just one of many such stories unfolding in modern India.
The collapse of a marriage is traumatic enough without having to deal with vindictiveness and threat to one’s financial security. And when the money involved is gargantuan, an already terrible situation becomes catastrophic. So the wealthy have two options to safeguard their wealth and wellness: the pre-nuptial agreement and a Trust. The former is becoming popular in India while the latter remains the most underrated instrument wielded by the country’s elite.
Here’s what you need to know about Trusts:
A wealthy person/family can set up a Family Trust to:
Going forward, we shall discuss the fifth advantage of a Family Trust: its ability to counter the threats posed by divorce.
Wealthy Indians of all ages (including those close to retirement and those beginning to ascend up the ladder) are getting divorced in larger numbers. So it’s never too late or too early to start a Family Trust. But keep in mind some best practices:
Overall, a Trust is like an insurance policy one takes against the aftermath of marrying an eminently unsuitable person. That’s the reason safeguarding clauses are put in the Trust Deed. Like the umbrella one carries to a picnic, one ho
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