Services

Family Trust

Contact us

A family trust in India is a legal arrangement created by a Settlor to transfer assets to a Trustee to manage for the benefit of Beneficiaries (family members) as specified in a Trust Deed. These private trusts offer benefits like safeguarding family wealth, facilitating smooth intergenerational wealth transfer, providing for family members, and assisting with tax optimization and efficient estate planning.

Benefits:

Asset Protection
Shields from lawsuits / Business risks / creditors
Succession Planning
Smooth transfer to heirs
Control & Privacy
Avoids public scrutiny
Special Need Support
Secure minors/ dependents/ special child/ elderly members
Tax Advantage
Income split, capital gains planning (Pass through vehicle)

The key responsibilities of a trustee in a private trust include

Administration
The corporate trustee handles the day-to-day administrative tasks of the trust, such as record-keeping, asset management, and compliance with legal and regulatory requirements.
Fiduciary duty
The corporate trustee has a fiduciary duty to act in the best interests of the beneficiaries, ensuring that the trust's assets are managed prudently and in accordance with the trust's terms.
Distribution of income and assets
The corporate trustee is responsible for distributing income and assets from the trust to the beneficiaries according to the terms of the trust document. They ensure that distributions are made in a fair and equitable manner.
Objective decision-making
As a neutral third party, a corporate trustee can make impartial decisions, avoiding conflicts of interest that may arise when family members serve as trustees.