Shardul Shroff is Executive Chairman, while Divi Dutta is Partner, Shardul Amarchand Mangaldas (Photo: Vivan Mehra)
With a sharp rise in the number of high net-worth individuals (HNIs) and the growing incidence of disputes among legal heirs, the need for estate planning is growing rapidly. Additionally, expansion of businesses and listings of companies result in the personal assets of promoters becoming more susceptible to claims and challenges. To mitigate this risk and to safeguard the future of promoters and their families, it is important to provide a suitable mechanism to ring-fence their assets.
The most favoured options used by HNIs and promoters for effective estate planning are wills, trusts, family settlement agreements and family constitutions.
A will ensures that an individual's assets are protected and distributed exactly as desired by the individual. It allows an individual to appoint custodians of assets, create multi-layered conditional bequests, effectively split and distribute assets, etc. Further, a will gives you the freedom to appoint a guardian of your choice for your heirs. It also allows you to appoint an executor, if needed, to manage your property.