Hindu succession gives priority to Class I heirs over others.
Family trusts protect assets, business control, and secure children’s future.
Private trusts simplify inheritance for NRIs, avoiding probate and delays.
Planning Succession When Children Are Settled Abroad
Answering all your succession, guardianship, will transfer, beneficiary and other queries here
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By Deepak Jain
My father passed away suddenly without writing a will. We are Hindus. He is survived by my mother, me (only child), and his two younger brothers. The property documents are in his name. My uncles are claiming they also have a share. Under Hindu Succession, do they really get a portion when my mother and I are alive?
No, your uncles do not get a share.
Under the Hindu Succession Act, 1956 – Section 8 (General rules of succession in the case of males) read with the Schedule, Class I heirs inherit first. In your case, you and your mother are Class I heirs, so you will share the property equally. Your father’s brothers are Class II heirs and get nothing as long as even one Class I heir is alive.
We live in India, but the person I trust most to raise my children is my sister, and she lives in Canada. If something were to happen to both me and my spouse, I want her to be the legal guardian of my kids and also manage the money we leave for them. My worry is that relatives here in India might object or try to take custody or control of the assets. How can I make my wishes legally watertight so no one can overturn them?
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Prepare a joint ‘Letter of Guardianship’ appointing your sister as the ‘testamentary guardian’ for both your children, giving her clear authority over their care and finances. Since she lives abroad, also name a temporary Indian guardian to act until she can take charge. This ensures your wishes are legally recognised and hard to challenge
My elder son has been running our export business for many years. My daughter and younger son are in other careers. I’m worried that after I’m gone, they will get ownership in the business and start interfering in decisions, which could create problems for my elder son. I still want to support them financially, but without letting them interfere in the business. How can I plan this?
You can set up a Business Trust (Private Family Trust) by transferring your business shares into the trust. Ownership of these shares can be split between your children, in the proportion you decide, as beneficiaries of the trust, while exclusive management rights for running the business are given to your elder son. The trust is overseen by a Board of Trustees — consisting of all your children — to ensure transparency. Your elder son can also be incentivised with an extra share of income or performance-based rewards for successfully running and growing the business, so he’s fairly compensated for his role while the others receive their share without interfering in operations.
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My daughter is happily married, but I want the assets I leave her to stay fully under her control. I don’t want her husband or in-laws to be able to claim them if the relationship changes in the future. What’s the safest way to plan her inheritance so it’s always protected?
You can create a Daughter Protection Private Trust with your daughter as the sole beneficiary. The trust ‘not your daughter’ will be the legal owner of the assets, so they are protected from any claims by her husband, in-laws, or creditors. You can set clear rules for how and when she receives income or benefits, ensuring the assets remain solely for her use and always under her control.
My son is in the US and my daughter is in Australia. They won’t be coming back to India. I’m concerned that when I’m gone, they’ll get stuck in legal paperwork, probate, and tax hassles while trying to inherit my property here. What’s the best way to make the process simple and smooth for them?
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Create an Indian Private Family Trust and transfer your assets into it while you’re alive.
As the initial trustee, you keep control during your lifetime. Name your children as successor beneficiaries and appoint at least one reliable Indian trustee to manage the assets after you. This structure bypasses probate, simplifies property management from abroad, ensures FEMA compliance, and reduces tax and legal delays for your NRI children.
(The author is Director NEXGEN ESTATE PLANNING SOLUTION PVT. LTD. He can be reached via e-mail at - deepak@aafmindia.co.in)
(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
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