# Succession & Estate Planning

> India has no inheritance tax, so succession planning is mostly about avoiding disputes, delays and avoidable capital gains, stamp duty and clubbing. The tools are a will (simple, effective on death), a private family trust (assets held for beneficiaries during life and after), gifts to relatives (tax-free but stamp duty on property), and family settlements. Nominations on bank and demat accounts don't decide ownership — the will or law does.

Practice: Tax Planning & Business Advisory — https://www.industax.com/services/advisory/

Business owners also need to align succession with shareholders' agreements, articles and partnership deeds, so control passes as intended. Families with members abroad need FEMA and foreign-tax checks.

We map assets and family goals, compare routes on tax and practicality, and implement the plan with partner advocates for documents that need legal drafting.

## Key facts

| Item | Detail |
| --- | --- |
| Inheritance tax | None in India |
| Tools | Will, private trust, gifts, family settlement |
| On later sale | Heir uses previous owner's cost and holding period |
| Nominee | Holds for legal heirs; doesn't override the will |

## Who needs this

- Business owners and promoters
- Families with property in several states or countries
- Parents of minor or special-needs children

## What's included

- Asset and family mapping
- Route comparison
- Implementation plan
- Coordination with advocates

## Documents

- Asset list
- Existing wills, deeds and nominations
- Family details

## Process

1. **Map** — Assets, goals and risks.
2. **Design** — Will, trust or settlement mix.
3. **Implement** — Documents executed; records updated.

## FAQs

### Will or trust — which is better?

A will is simpler and cheaper but takes effect only on death and can be challenged. A private trust can manage assets during your lifetime and after, avoid probate, and protect vulnerable beneficiaries, but costs more to set up and run.

### Is a family settlement taxable?

A genuine family settlement recognising existing rights among family members is generally not treated as a transfer, but documentation and stamp duty need care.

### How do NRIs plan succession for Indian assets?

Usually with an Indian will covering Indian assets, considering FEMA rules on who can inherit agricultural land and how proceeds can be repatriated.

## Official sources

- India Code — Indian Trusts Act, Succession Act: https://www.indiacode.nic.in/
- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Canonical page: https://www.industax.com/services/advisory/succession-planning
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.