Should I Write a Will or Form a Trust for the Distribution of My Assets?

I have a wife and a daughter. I want all my property to be given to my wife and then to a trust which decides on monthly distribution of income from the property to my daughter and grandson. Thus, I want to ensure that the asset generates wealth without being misused by anyone. Please guide me how should I set up the trust.

—Name withheld on request

A trust would indeed be a good option in your case, to help ensure that your assets will go exactly as you wish and the ability for anyone to challenge it will be very limited, as opposed to simply using a will. Since the primary objective is to protect the interests of your daughter and grandson, your daughter can be made a trustee (but consider adding one more person) and the beneficiary should be only your daughter and grandson. You can set up a personal trust today as a ‘lifetime trust’, and bequeath your assets to such trust in your will. Alternatively, you can set up a testamentary private trust through your will. In both cases, you will be the settlor of the trust.

We would recommend the Lifetime Trust option, as it is preferable to set up a simple trust in your lifetime, which would enable you to control the affairs of the trust during your lifetime, and your assets to be bequeathed to such trust under the will. May go. The other variation is that you set up a lifetime trust today and have completed the full transfer of your assets to the trust over your lifetime (with very limited personal assets to pass under your will). Such trust can be either a fixed trust (where the rights of each beneficiary are clearly identified and ascertained by the settlor in the trust deed) or a discretionary trust (where the entitlement of each beneficiary is identified or ascertained by the settlor in the trust). is not imposed) work). The trust deed can be carefully crafted to provide additional security measures and flexibility to ensure timely delivery to your daughter and grandchildren. Depending on your other objectives, you can design an appropriate trust structure after discussing it with your attorney.

Rishabh Shroff, Partner and Co-Head Private Client, Cyril Amarchand Mangaldas.