Estate Planning Under the Indian Succession Act, 1925

Crafting an airtight estate plan begins with understanding the legal tools at your disposal. As a specialist in asset structuring and intergenerational wealth planning, I guide Bengaluru’s leading families and entrepreneurs through the essentials of the Indian Succession Act, 1925—and beyond. Here’s how the core instruments—Wills, Codicils, and Probate—fit into a robust plan:

1. The Indian Succession Act, 1925: Your Estate’s Legal Foundation

This Act codifies the mechanics of wills, codicils, probate, and letters of administration for non-Hindu estates. It ensures that, regardless of faith, your testamentary intentions are given effect and your heirs can collect assets without undue delay.

2. Wills: The Central Pillar of Your Plan

2.1 What Is a Will?

A Will is your testamentary disposition of movable and immovable assets, effective only upon death. Under Section 2(h) of the Succession Act, a Will can:

• Distribute real estate (e.g. your Whitefield office, Koramangala home)
• Transfer shares in your family enterprise or HUF
• Create trusts (e.g., for minors or special-needs heirs)

Key Characteristics:

• Declaration of Intention: “I, [Name], hereby bequeath…”
• Revocable: You can amend or revoke at any time.
• Confidential & Unregistered: No stamp duty or mandatory registration—trust in your executor’s integrity.

2.2 Types of Wills (Sec. 63–81)

• Holographic Will: Entirely in your handwriting
• Nuncupative Will: Oral, made in extremis (rare)
• Contingent, Joint, Mutual Wills: For spouses or partners sharing reciprocal promises

Privileged vs. Unprivileged Wills

• Privileged: Mariner, soldier, or airman on duty—expires in one month if not formalized
• Unprivileged: Everyone else; lasts indefinitely until properly revoked

3. Drafting Your Will: A Step-by-Step Blueprint

1. List Your Assets: Bungalows in Basavanagudi, Whitefield startup shares, portfolios.
2. Identify Beneficiaries: Spouses, children (including minor trusts), charities, even a trusted friend.
3. Detail Obligations: Mortgages, business debts, outstanding guarantees.
4. Name an Executor: One or more—their role is to administer as per Section 168–169 of the Act.
5. Appoint Guardians (if minors): Specify successors and termination events.
6. Sign & Witness: Two unrelated witnesses attest; the testator must be of sound mind (doctor’s note recommended).
7. (Optional) Register or Notarize: Adds public proof but isn’t legally mandatory.

Pitfalls to Avoid:

• Ambiguous descriptions of property
• Gifts to attesting witnesses (automatically revoked)
• Failing to account for future children or marriages

4. Codicils: Simple Amendments on the Go

A codicil is a dated, witnessed document that amends or supplements your Will—ideal for minor changes (e.g., updating a beneficiary’s name after marriage) without redrafting the entire Will.

5. Probate & Letters of Administration

5.1 Why Probate Matters

Probate is the court’s certification that your Will is valid. It:

• Confirms the executor’s authority
• Supervises estate administration—creditors paid, assets collected

5.2 When You Need It

• For immovable property in your sole name
• Complex estates with contested claims

Not Subject to Probate:

• Jointly held assets (joint tenancy)
• Life-insurance policies (paid directly to nominee)
• Trust-held assets

6. Tax & Trust Planning Through Your Will

6.1 Family-HUF Creation (Sec. 64(2))

Bequeath your business or rental income to an HUF—treated as a separate taxable entity, preserving your personal allowances.

6.2 Minor & Special-Needs Trusts (Sec. 64(1))

Redirect legacies for minors or dependents into trusts:

• Income not clubbed with your estate
• Court delays avoided—trustees disburse per your instructions

6.3 Charitable & Discretionary Trusts (Sec. 16(4))

Endow a charitable trust or a discretionary family trust:

• Charitable Remainder Trusts: Fixed % to heirs, balance to charity
• Family Trusts: Flexibility to support irresponsible heirs or future philanthropy

7. Why This Matters for Your Family & Business

• Asset Structuring: Aligns property titles, shareholdings, and insurance for seamless transfer
• Intergenerational Planning: Embeds family values and governance into legal documents
• Liquidity & Tax Efficiency: Ensures enough cash for estate duties and minimal tax leakage
• Peace of Mind: You dictate terms—no surprise heirs, no court-imposed default succession

Ready to Fortify Your Legacy?

As Bengaluru’s specialist in asset structuring and intergenerational wealth planning, I craft bespoke Wills, Trusts, and Probate strategies that reflect your vision and withstand legal scrutiny.

Let’s meet over a Coffee/Tea to architect your estate plan and secure your family’s future.
Call/WhatsApp: +91 97436 83444
Email: sandeep@sandeepnsetty