I am a 55-year-old unmarried woman living in Pune. My estate includes a bungalow valued at ₹8 crore and financial investments of ₹7 crore. I have a younger brother (residing in the US) and two nephews. I wish to leave part of my wealth to my nephews and the rest to a charitable foundation that supports education for underprivileged girls. How can I set up a Will or trust that clearly executes this plan while preventing legal challenges from my brother?
-Name witheld on request
As per the information provided, we assume you are a Hindu and that the properties are entirely self-acquired, with no rights or interests held by any other person.
Since you are unmarried and have no direct legal heirs, such as children or parents, your brother would be your closest Class II legal heir under the Hindu Succession Act. In the absence of a Will or trust, he would inherit your entire estate by default. To ensure your wealth benefits your nephews and the intended charitable cause, you should put in place a clear and legally sound estate plan.
The simplest approach is to execute a Will clearly outlining how your assets will be distributed, allocating specific portions of your bungalow and investments to your nephews and the chosen charitable foundation.
You may also authorize the executor to liquidate assets and distribute the proceeds accordingly. To avoid disputes, the Will should be professionally drafted, unambiguous and include beneficiary details, property and bank information and a brief explanation of your decisions, ensuring clarity and demonstrating intent.
It is advisable to register the Will with the sub-registrar in Pune. Although registration is not mandatory, it strengthens the Will’s authenticity and reduces the likelihood of disputes.
Additionally, executing the Will in the presence of two reliable witnesses is crucial. Also, have the executor defined in the Will who will execute your wishes after you. This person preferably should be younger than you and ideally informed about his role. To further safeguard the document, you can store it with a trusted person of your choice.
However, if you want your wishes to be executed smoothly and ensure continued management of assets, especially the charitable component, consider forming a private trust during your lifetime. You can transfer your investments and even the bungalow into the trust’s name while retaining control as the initial trustee.
Though there is no income tax implication for the assets that are settled by you, there will be a stamp duty implication in transferring the bungalow to the trust.
Upon your passing, the trustees of your trust (individuals or a professional trustee company) will distribute or manage the assets according to the trust deed. This structure avoids probate, provides privacy and reduces the risk of legal challenges.
Within the trust deed, you may specify that a fixed percentage or corpus is to be set aside for your nephews and the remainder be transferred to or managed for the charitable foundation supporting girls’ education.
By combining a properly drafted and registered Will or trust with professional execution, your estate can be managed exactly as you envision while minimizing any potential legal interference from your brother.
Neha Pathak, executive group vice president, head of trust and estate planning, Motilal Oswal Private Wealth.
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