2. All efforts have been made to provide the most comprehensive and accurate information in this presentation. The information, opinions and views contained within this presentation are based upon publicly available information, which are subject to change from time to time without any prior notice and may be updated anytime without any prior notice to any and / or all recipients, including clients. The information and material presented herein are provided to you for information purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or any other financial instruments in specified classes of investments. Neither We nor our affiliates or their directors, employees, agents or representatives shall be responsible or liable in any manner, directly or indirectly, for views or opinions expressed in this presentation, or the contents or any systemic errors or discrepancies herein or for any decisions or actions taken in reliance on the presentation or inability to use or access our service of this presentation or for any loss or damages whether direct or indirect, incidental, special or consequential including without limitation loss of revenue or profits or any loss or damage that may arise from or in connection with the use for reliance on this presentation or inability to use or access our service or this presentation. We do not take any responsibility for any clerical, computational, systemic or other errors in the presentation. Disclaimer

4. What is Succession Planning ? Estate planning is the process of making arrangements as to how, when and to whom, the proceeds of your estate are to be distributed. succession planning refers to the organized approach to managing the accumulate assets of a person in the interest of the intended beneficiaries.

5. Need of Succession Planning To ensure that your money and other assets go to the people you choose. Efficient management during and after life. To take care of unforeseen eventualities by providing for who will care for your minor children if you become unable to. Defusing potential conflicts over the distribution of your assets. To get peace of mind. To avoid probate.

6. Who need it ? A Business house, Entrepreneur or Professional. Nuclear or joint family. A Family with no legal heir. An NRI with assets in India. A family with beneficiaries overseas. Parent of a special child. Multiple marriages. Inheritance tax planning. Muslim Families. Family with beneficiaries across globe with different residential status

7. Advantages of Succession Planning Distribution of assets as per one’s wish and not as per personal law. Asset protection from within or outside the family. Avid disputes/conflicts within the family. Continual support to the dependent beneficiaries e.g. minors, parents, medical emergencies, etc. Demarcation between personal and business income. Optimize global taxation where the children are settled abroad. Wealth preservation and consolidation. Succession Planning covers the structural, financial, legal and tax aspect of managing wealth in the interest of the intended beneficiaries.

8. Two ways of established Estate Planning WillTrust

9. What is will ? Estate planning is the process of making arrangements as to how, when and to whom, the proceeds of your estate are to be distributed. Which is help you to allocate of your estate to the right person or right beneficiaries. Will can be written in Hindi, English or any other language.

10. Who can write a will? Should be a major. Indian National NRI PIO/OCI. Should be sound minded. otherwise excluded from make a will.

11. Components of will Will Components TestatorBeneficiariesWitnessesExecutor

12. Main parties to a will Testator: The person making the will. He has power and authority of disposing assets as per her wishes. Beneficiaries: All those persons, body of persons or an organization who benefit from the Will. Witnesses: The person chosen by the testator to countersign the document. It should be noted here that a witness should not be a beneficiary in the Will. Executor: Someone trusted by the testator who plays the crucial role of executing the Will. On the demise of the testator, the Executor undertakes the responsibility of executing the wishes and desires of the testator as per his Will. He is responsible for obtaining probate from court where required and the final distribution of the estate of the testator.

13. Essential feature of a Will A testator can only dispose-off what he owns and what is essentially legally transferable. A testator can change the contents of the will any number of times, before his death, such charges to the will are called “Codicils”. Only using the word “Will” without making reference to disposal of property upon death of testator is not a will. A will has to be written and signed in the presence of two witnesses. Person working in the armed forces can make an oral will. Registration of will is not mandatory but if a will is registered, no person can examine the will and copy the contents without an express permission in writing of the testator.

14. Consequences of not having a Will If one dies intestate, his wealth gets distributed among his natural legal heirs as per personal succession laws, But not according to his wish. It can be a lengthy process with undesired results leading to family disputes. Legal heirs may have to go through long drawn out legal battles to claim their rights. Business built over generations may split. Business may pass over to person who does not have the right skills to manage.

15. What is Trust ? A trust is a legal entity that lets you put conditions on how certain assets are distributed upon your death. Trusts also can help minimize gift and estate taxes. Trusts can be arranged in many ways and can specify exactly how and when the assets pass to the beneficiaries. No probate required for assets transferred through a Trust.

16. Need of creating Trust For management of all types of assets through expert advice. Avoidance of family disputes leading to disintegration of family businesses. Accumulation of the estate during the lifetime and post death through the hands of trustees. To protect the assets from future changes in tax liability. Trusts are also used to manage collective family land so that it can be held in the family for generations. To put money aside for a specific purpose- e.g. to pay for a child's wedding or tertiary education costs when they grow up.

17. Advantages of a Trust Avoid unwanted claims on your estate when you die – such as from of a former partner. To transfer a substantial amount of money tax-free to beneficiaries who are at least two generations your junior - typically your grandchildren. Protect selected assets against claims and creditors – for example, to protect your family, home from the potential failure of a business venture. Set aside money for special reasons, such as a child or grandchild’s education. Allows certain benefits to go to a charity and the remainder to your beneficiaries. A trust can provide a structure that is capable of rapid change as circumstances demand. A portfolio of international and national property can all be held under one single Trust

18. Fundamentals of a valid Trust For a valid trust to creation the founder must indicate his Intention to Create the trust and the creator must clarify his purpose for the establishment of the trust. The Settlor must be specify about the beneficiaries. The maker must be classify for his assets which he want to be calculated as in trust property. The creator must make clear vision for the property that which of them, he want to be transfer in to trust.

19. Trust by an (HUF) Hindu Undivided Family. Trust by a Minor. Trust by a Woman. Association of Persons. Who are eligible for creating a Trust ?

20. Assets that a Trust can hold Family Trust Art & Jewelry Bank Accounts Business/Inherited Assets Beneficiaries Real Estate Investments Portfolio

21. Is registration of Trust must ? As per section 5 of the Indian Trusts Act: A private Trust in relation to an fixed property must be created by a non- testamentary tool in writing, signed by the author of the trust or the trustee and registered(under Section 17 of Indian Registration Act). Thus, registration of a trust is necessary when it is declared by a non-testamentary instrument. This registration would still be required, even if the instrument declaring the trust is exempt from registration und the Indian Registration Act. In case of a Private Trust declared by a Will, registration will not be necessary, even if it involves an immovable property. Registration will not be required, of a trust in relation to movable property.

22. Type of Trust Private trust : A trust is a relation ship where one Party transfer his property is which is held by another party for the benefit of the third party. Approved by the Indian Trust Act,1882. Public Trust : When a trust formed for the benefit of public or any section of the public, religious or charitable purpose includes a temple any other religious or charitable endowment Trust Public Trust Private Trust

23. Main Parties to a Private Trust Settlor : One who transfer the assets in the trust, either direct or through the letter on whishes. Trustee : One who hold the trust properly in the trust for the benefit of others. Administrator / Managing Trustee : One who actually does the trust job in terms of filling returns or investments for the trust. Protector : Protector is the person who protects the interest of the beneficiaries and keep check on the trustees. Settlor Trustee Managing Trustee Protector Beneficiaries Wife Children Parents Charity

24. Private Trust Offers Private trust offers an insolvency protection. Private trust offers stepwise access to the family legacy. Private trust is a private document which gets published in the news paper when executed.

25. A trust can be cancelled When purpose of the trust is completely fulfilled. When the purpose of the trust becomes unlawful. When the fulfillment of its purpose becomes impossible by destruction/damage of the property.

26. Taxation of private Trust The shares of all beneficiaries are responsible to review, either by the trustee(s) or sometimes directly in the hands of the beneficiary entitled to income. The assessment is made at the rate that is applicable to total income of each beneficiary. If the income of the trust consists of profits and gains of business, income tax is charged in the hands of trustee(s) on the whole of the income and at maximum marginal rate. This provision is not applicable, incase of a trust which has been declared by anyone exclusively for the benefit of a relative dependent on him and if this trust is the only trust so declared by him.

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