Testamentary Trust - Family Trust India

Will Draft - Succession Planning - Testamentary Trust

A paragraph or two in a person’s will is not always enough to ensure that their wishes will be fulfilled after their death. To protect the inheritance and the financial well-being of their child or spouse, they might need to consider a testamentary trust. When it comes to the point of estate planning, one of the parent's biggest fears is that their children or child inheritance will be used for purposes other than for what it was intended. It is a matter of the will draft that is being drafted by the parents and will draft also needs succession planning. If succession planning is not there than the will draft is of no use. One may also fear the long-term safety of the capital they will leave to their spouse if he or she remarries. To secure their bequest, standard wording is normally used in the body of the will that is the bequest to my spouse will be excluded from any joint estate or any accrual claim or the matrimonial powers of their spouse. Unfortunately, this is insufficient to protect the loved one's financial stability. The place where spouses are married in the community of property, the day-to-day expenses and incomes of both spouses fall within the bounds of the joint estate. Bequests subject, however, fall under the heir’s estate. People who are married in community of property can, therefore, can have two estates either the joint estate or their estate.

There are, however, a few aspects that are not covered in the standard mentioned above paragraph with some dire consequences. The first thing is that the new husband could exert influence on their wife to make the money accessible by placing inherited capital in a joint account or by sponsoring their activities. The second is more important than the first and is even much scarier. Although the new husband will not have access to their wife’s separate estate, that’s not the case with their debtors. In a marriage in community of property, one spouse’s debtors, after marriage, become both spouses joint debtors. That means that, if the girl marries someone with large debts, the new husband’s debtors will also become her debtors. As such, the debtors can also claim from her for the separate estate. There is no wording to add into a will to counteract this. Even if the couple is married out of community of property, if there is a case of the insolvency of either spouse, all assets are repossessed to service the debt of both persons. The “innocent” spouse should then prove that the asset wasn’t purchased with the communal money. In the case of bequests, however, this shouldn’t be too difficult to prove by the spouse. So testamentary trust plays an important role.

The only way to protect the assets of the person is by using a testamentary trust. In this case, the will dictates that all assets are to be kept in trust for the benefit of the person’s heir. If the trust is managed by a professional trustee, one can rest assured that the money will be used as they intended until the moment the trust ends – a date that can also be determined in the will. Family India Trust includes the testamentary trust in case of the will. Family India trust has become important.

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