Question 1

Why set up a private family trust?

Accepted Answer

A discretionary family trust holds and transitions assets across generations, ring-fences them from business and personal liabilities, avoids the cost and delay of probate, and enables structured, tax-efficient succession with clear governance — far more robust than relying on a will alone.

Question 2

Is there an inheritance or estate tax in India?

Accepted Answer

India currently has no estate or inheritance tax. However, succession still raises income-tax, clubbing, stamp-duty and FEMA issues, and the absence of a tax does not remove the need for clear, dispute-proof transfer structures — which is what estate planning provides.

Question 3

What does a family office actually do?

Accepted Answer

A family office consolidates a family's investment management, accounting and tax, succession, philanthropy, governance and next-generation education under one structure — single-family or multi-family. We help design the operating model, governance and reporting, and run the finance and compliance function.

Question 4

How are private trusts taxed in India?

Accepted Answer

A specific (determinate) trust is generally taxed in the hands of the trustee at the rates applicable to the beneficiaries, while a discretionary trust is taxed at the maximum marginal rate unless it qualifies for relief. The settlor's intent, beneficiary class and source of income all drive the outcome — we structure to optimise it.

Question 5

What are FATCA and CRS obligations for wealthy families?

Accepted Answer

FATCA (US) and CRS (OECD) require financial institutions to report account holders' details to tax authorities through automatic exchange of information. Families with cross-border accounts must complete self-certifications correctly and ensure consistent disclosure across jurisdictions — we manage the self-certs and reconcile reporting.

Question 6

How do you plan succession for a family business?

Accepted Answer

We separate ownership from management, often via a holding company or trust, draft a family constitution governing roles, dividends, dispute resolution and exit, align it with wills and shareholding, and sequence the transfer to manage tax and control — so the business survives the generational handover intact.

Family Office & Private Wealth

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