Building assets for your loved ones could be a long cherished dream it entails lot of sacrifices and efforts to transform them into reality. Whilst the process of creation one would always want the beneficial interest of their loved ones to be taken care of either during the lifetime or post the lifetime.
Wouldn’t it be sad if your loved ones have to struggle to claim their deserving right? It could be in the court or out of court. Can this be avoided? The answer is a simple YES. Being prudent and responsible can help you avoid ugly legal hassles. Simply leave a Will, which will help your family inherit the wealth seamlessly.
A Will is an instrument that allows you to put down on paper your final wish of how your wealth is to be distributed to the people who matter to you. While the drawing of a Will is considered a simple process, it may not be so. From using the correct language to draft it, to ensuring that none of your property has been missed out on, making of a Will becomes a more complex process than it seems. One tiny error can defeat the very purpose of drawing the Will. We believe precaution is better than cure.
Our Offering
Drawing up a Will is our forte. As a part of this service:
- We would conduct meetings with you to understand your needs, on the basis of which we will draft your will.
- We will video-record the entire process so that challenging the Will later become a near-impossibility.
- We also offer to safe-keep the Will with us.
Will Execution Service
Your responsibility does not end with just drawing up the Will. The more significant part of the exercise is executing the document correctly. Of the several steps involved in executing a Will, the key are attesting and registering the Will. Moreover, you also need to appoint the right person to execute the Will after you are no more i.e. someone who can ensure property is distributed exactly as mentioned in the Will.
The fact that the Supreme Court has held Wills not executed duly to be invalid indicates the importance of proper execution. Why leave your family to solve the legal jigsaw when experts like us can do it meticulously.
Our Offering
Leave all the Will-related hassles to us.
- It is our job to identify the assets of the deceased and procure the Grant, Letter of Administration to enable smooth transfer of assets.
- We would also help in settling debts and other pending dues of the deceased.
- Other additional paperwork like tax returns or business interests will also be taken care of by us.
- We are also willing to be appointed as executors of the Will i.e. distribute assets to beneficiaries as per the directions mentioned in the Will.
The wealth creation cycle can be a complex process that leads us to create a more robust and secure structure – The Trust. Trust can be used optimally during your lifetime and/or post your lifetime, it can hold movable and immovable assets to ensure rightful interest of the beneficiaries are protected.
Your business may suffer a loss but the asset put in the trust will be insulated from any potential legal claims and/or litigation’s. By adopting this process you can avoid probate process and court legalities.
A trust is a private instrument that is substantially less challengeable than a Will. In fact, with an expert drafting the trust deed, the chances of it being challenged in court can be nil.
Apart from protection that a trust offers, it also allows you to leave behind a detailed investment mandate for the beneficiaries.
1. PRIVATE FAMILY TRUST
Family trusts are very effective and convenient, and if used prudently can be a great tool not only for succession planning, but also for managing assets, finances and investing in securities and utilising the returns earned by the trust for the benefit of the beneficiaries. A family trust as the name suggests is a vehicle independent of its author or the beneficiaries and therefore enjoys a relatively permanent nature and greater flexibility in terms of managing the assets held in the trust in terms of investing, acquiring, disposing and otherwise dealing with the assets of the trust.
A family trust can also be utilised to provide for specific needs of the family, say education or health or travel or marriage and in itself act as a vehicle which holds assets only for that specific purpose, multiplying, safeguarding, managing and securing them for that outlined purpose. A family trust can be very effective in case differently abled family members. A private family trust can offer high degree of protection and the desired flexibility at the same time.
Advantages of Private Family Trust:
- Provision for lifetime for all the Beneficiaries.
- To ring fence personal assets from any future potential risks arising out of senior corporate responsibilities, actions and decisions.
- To fulfill the goal of Asset protection Planning, i.e. to insulate Assets from any claims.
- Smooth transfer of Assets to the Beneficiaries.
- Insulating Assets against any litigation in future from within or outside the Family.
- Provision in the Trust to take care of daily maintenance, medical emergencies and facilities of all the beneficiaries during their lifetime.
- Setting a framework/guideline on investment decision and portfolio management.
- Making provision for long term and ongoing charity.
- Minimum hassle and paperwork for the Beneficiaries.
- Provision against Critical illness or any medical emergencies.
- To Plan effectively to avoid loss of wealth base for future generation when Inheritance Tax is imposed by the Government.
- Contingencies like sudden death, incapacitation to be taken care.
- No family member to be burdened with paperwork, taxation and execution related activities.
- To eliminate Probate process as it will help in saving a great amount of legal formalities, legislative fees and delays.
2. ASSET PROTECTION TRUST
What Is an Asset Protection Trust (APT)?
An asset protection trust (APT) is a financial-planning trust vehicle that holds an individual’s assets with the purpose of shielding them from creditors. Asset protection trusts offer the strongest protection you can find from creditors, lawsuits, or any judgments against your estate. An APT can even help deter costly litigation before it begins, or it can influence outcomes of settlement negotiations favorably.
The creditor and regulator risks are not only applicable to entrepreneurs but also senior executives or professionals. Director of a company (including the independent director) are exposed to corporate action triggered risks.
When should one consider
- When entrepreneurs are giving or have given personal guarantee.
- When the entrepreneurs borrow heavily for businesses expansion.
- Liabilities that can arise in capacity of a Director.
- Individuals facing divorce.
- Entrepreneurs in the regulated business space.
- An asset protection trust (APT) is a complex financial-planning tool designed to protect your assets from creditors.
- APTs offer the strongest protection you can find from creditors, lawsuits, or judgments against your estate.
- These vehicles are structured as either “domestic” or “foreign” asset protection trusts.
3. CHARITABLE TRUST
Trust created for advancement of education, promotion of public health and comfort, relief of poverty, furtherance of religion, or any other purpose regarded as charitable in law. Benevolent and philanthropic purposes are not necessarily charitable unless they are solely and exclusively for the benefit of public or a class or section of it. Charitable trusts (unlike private or non-charitable trust) can have perpetual existence and are not subject to laws against perpetuity. They are wholly or partially exempt from almost all taxes. Where the purpose of a charitable trust becomes impossible or unpractical to carry out then, under the legal doctrine of cy près (French for, as near as), the trustees acting by a majority or a court may choose another charitable purpose as nearly like the original purpose as possible.
4. ESOP TRUSTS
An Employee Benefit Trust (EBT) is a discretionary trust established for the benefit of employees of a company (or a group of companies). Through Employee Stock Option Plans (ESOP), Corporates can encourage Employees to participate in the ownership of the company. ESOP trusts facilitate this process.
5. EMPLOYEE WELFARE TRUSTS (EWT)
An Employee Welfare Trusts (EWT)are established to cater to employee welfare needs such as funding child education, medical expenses and extra ordinary expenses not covered under compensation.
The objects of such Trusts may be all of the following or may be some selective objects, but which are always for the benefit of all employees or for a class of employees. The objectives may be as under.
- Medical Aid to employees or/and their family.
- Educational Help to employees or/and their children.
- Help to purchase residential house.
- For giving prize to an employee who has done extraordinary job for Company.
- For arranging Trips, Seminars or training for employees.
- For extending retirement gifts to employees etc.
Terentia’s customised services in this area include:
- Review of transaction documents.
- Executing of Trust documents and obtaining PAN / TAN.
- Opening and operating trust bank / depository / broker accounts.
- Undertaking purchase and sale of securities, through appointed broker, in line with pre-approved investment policy.
- Implementing benefits application policy.
- Recording approvals and maintain trust accounts.
- Filing tax returns and ensuring tax compliance.
- Reporting and MIS.
The role as a trustee is to administer and distribute the assets in the trust defined by the wishes, as expressed in the trust document by the author of the Trust.
- It is the fiduciary duty, legal authority, and responsibility to manage assets held in trust and handle day-to-day financial matters on behalf of the author of the Trust.
- A broad range of duties from making difficult decisions and judgments related to distributions and legal interpretations, to recordkeeping, reporting, accounting, initiating transactions, managing trust assets, filing taxes on behalf of the trust, and more.
Why to appoint a Corporate Trustee?
1. Domain Knowledge.
2. Expertise.
3. Continuity.
4. Secrecy and Security.
5. Impartial.
6. Fiduciary.
7. Efficient Management.
8. Governance.
9. Wide Range of Services under one roof.
10. Timely Reporting.
There are three primary elements to the trustee’s role:
Administration
The trust administration role is central to carrying out your wishes regarding the use of assets in the trust.
- We carry out your directions and follow your guidelines in handling the specific circumstances of each request for funds from trust beneficiaries.
- This involves legal interpretation of the language in the document, appropriate input from family members, and conformance with appropriate and applicable trust law.
- Experienced and unbiased trust administration and record keeping are vital components to implementing your plan.
- Day-to-day relationship management is also handled by your trusted financial advisor.
Asset Management
At Terentia we believe it is our ultimate responsible for the preservation and investment of assets in the trust for all classes of beneficiaries, ensuring that invested assets are productive and managed appropriately given the trust’s objectives.
- We consider it as our legal responsibility to reassess the objectives of the trust and current market conditions to be sure that the investments match those objectives.
- If mandated, then we will hire professional managers to handle the day-to-day specialized activities such as investment management.
- Day-to-day investment management is delegated to your trusted financial advisor.
- We also oversee the preparation of appropriate tax returns and all the trust accounting in compliance with law.
Custody
We maintain the highest level of financial secretary and security guard. We identify and take title to the trust’s assets, keep accurate records, report to the current beneficiaries, execute and settle all transactions, protect and insure the property and defend the trust against claimants.
