“प्रज्ञान”
Means of Wisdom

In the earlier Pragyaan we explained you about Will, in this part we will take you through Trusts

Timely succession & Estate Planning is a key to hassle free future for you and your Family

 

WHAT IS A TRUST

In simple words a Trust is a written arrangement whereby an appointed trustee is given money or assets to hold and manage for the benefit of those defined in the deed or will which created the trust.

 

WHO SHOULD SETUP A TRUST?

1.      Asset Class 2.      Family Structure 3.      Needs
 

 

    
  • Individuals holding significant assets, spread across at multiple locations in India
  • Varied assets
  • Families having joint family structures
  • Families or individuals having cross country assets
  • Families having internal complications holdings
  • Families considering Asset Protection
  • Protection against litigation
  • No legal heirs
  • Incapacitation
  • Minor children
  • Differently able children
  • Charity

 

 

 WHAT CAN YOU ACHIEVE BY SETTING UP A TRUST
  • Making arrangements for your family, and distribution of assets at various stages and circumstances
  • Making gifts – you can specify at what age and in what circumstances your intended beneficiaries can have them
  • Protecting assets if you don’t wish the beneficiary to have full control of them
  • Managing the assets without losing the control over them.

 

 

 ADVANTAGES OF A TRUST
  • Can be set up for benefits during and after lifetime. Provisions can be made for contingencies like incapacitation, critical illness etc.
  • It is of an ambulatory nature i.e. can be modified or altered at any time
DISADVANTAGES OF A TRUST
  • More complicated to draft than a will.
  • A poorly drafted trust can be nearly impossible to execute

You can also download “Pragyan – Means of wisdom – Series 3” in PDF format.

Disclaimer:  This knowledge series is not intended to hurt the sentiments of communities or individuals, living or dead that appear in it. Our intention has been, is and will always be to constantly add value to our valuable customers in some way or the other while we try to ensure that the information we provide is correct, mistakes do occur and we cannot guarantee the accuracy of our material. Terentia makes no warranties or representations as to the accuracy of information presented in the article/s. Terentia in the process of creating, producing or delivering this article shall not be liable for any direct, incidental, consequential, indirect, special, exemplary, punitive or other damages arising out of the use, or any errors or omissions or in the content of the article.

All rights are reserved with Terentia Consultants Pvt. Ltd.