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    Home » Blog » Trust vs Will: What Bangalore’s Business Families Need to Know
    Trust vs Will
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    Trust vs Will: What Bangalore’s Business Families Need to Know

    Sandeep N SettyBy Sandeep N SettyAugust 26, 20254 Mins Read
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    For Bengaluru’s business families and HNIs, wealth is more than numbers, it’s legacy. You’ve built, expanded, and protected your estate over decades. But what happens when the next generation must take over?

    Will it be a smooth handover, or a courtroom headline?

    Let’s be clear: estate planning is not a luxury. It’s a leadership act.

    Why This Matters Now

    In India, 70% of family wealth doesn’t survive the second generation.
    By the third, it’s 90%.

    And not because families don’t care, but because they delay.
    – No clear succession plan
    – Misaligned expectations between generations
    – Court delays, tax confusion, emotional rifts

    That’s why business families in Bangalore, from Whitefield to Jayanagar, are quietly turning to Wills and Trusts to safeguard what matters.

    Let’s break it down.

    What Is a Will?

    A Will is your written instruction on who gets what after you’re gone. Under the Indian Succession Act, 1925, it ensures your property is passed on according to your wishes, not based on generic law.

    • Easy to set up
    • Full control during your lifetime
    • Minimal cost
    • No inheritance tax in India
    • Can be updated any time

    “A Will doesn’t just transfer wealth—it transfers clarity.”

    • Cialdini Principle – Commitment: Once you start planning, you feel responsible to finish. A Will is the simplest way to take that first, powerful step.

    But here’s the catch: a Will is only effective after death and might still require probate—a public, often slow, court process. If your estate is large or complex, this opens the door to conflict.

    What Is a Trust?

    A Trust is like a vault with rules.

    You, the Settlor, transfer assets to Trustees, who manage them for your Beneficiaries, based on your blueprint.

    • Created while you’re alive or via your Will
    • Offers asset protection from disputes or lawsuits
    • Can hold businesses, real estate, and investments
    • Can support minors, special-needs family, or heirs not ready to inherit

     India’s top Estate Planners, CAs, lawyers, and family offices are using trusts to help clients “ring-fence” wealth, especially business assets and ancestral homes.

    Yes, trusts involve more paperwork, legal costs, and in Karnataka, stamp duty on asset transfer (around 5%). But what you gain is control, even from beyond the grave.

    Trust vs Will: Key Differences at a Glance

    FeatureWillTrust
    When it startsAfter deathImmediately (if living)
    PrivacyPublic (after probate)Private
    CostLowModerate to high
    ProtectionMinimalStrong
    FlexibilityFixedCustomizable rules
    Tax implicationsNo estate taxStamp duty on asset transfer
    Control over useLimitedHigh (conditions, phases)

     You can’t create a trust once crisis strikes. The chance to plan privately and intentionally is limited—until life makes the choice for you.

    Bangalore Case Study

    Two family-owned businesses. Similar profiles. Two very different outcomes.

    – Mr. A relied only on a Will. His heirs spent 14 months in probate, facing delays in transferring real estate, and internal rifts over interpretation.

    – Mr. B created a private trust. His trustees transferred assets seamlessly. The business continued. No court, no conflict.

     Successful families aren’t “waiting to decide”—they’re planning proactively. And it’s becoming the new norm among Bangalore’s elite.

    Which One’s Right for You?

    Choose a Will if:

    • Your assets are straightforward
    • You trust the legal system to execute your wishes
    • You want low-cost, high-speed setup

    Choose a Trust if:

    • You own a business or multiple properties
    • You need phased distribution (for minors, special-needs heirs, or education planning)
    • You want privacy, asset protection, and control

    Often, families use both:

    • A Will for simpler assets and naming guardians
    • A Trust for real estate, businesses, or complex wealth transfers

     Once you clarify your vision—simplicity or control—your estate structure should reflect it.

    What To Do Next

    Here’s your next best step:

    1. List your assets – Real estate, shares, businesses, insurance, gold
    2. Assess your family dynamics – Are your heirs ready? Do they have differing needs?
    3. Speak to a professional – Someone who understands the emotional and technical side of succession
    4. Start small – Begin with a Will, then expand to a Trust if needed

     By planning now, you’re not just preserving wealth—you’re preserving peace. Your family will thank you later.

    Ready to Start the Conversation?

    I’m Dr. (HC) Sandeep N. Setty—advisor to business families, 4x author, and estate architect for those who think ahead.

    I help Bengaluru’s HNIs not just pass down money, but pass down meaning. If you’re unsure whether a Trust or Will is right, I’m here to help with a calm, confidential conversation.

    Let’s start a conversation!
    Let’s design your legacy, one with clarity, continuity, and confidence.

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    Sandeep N Setty
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    Sandeep N Setty is a Financial Advisor, Author, and Speaker specializing in asset structuring and inter-generational planning. He helps business owners and affluent families achieve financial independence and lasting wealth.

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