Fund structures are gaining popularity among wealthy individuals in India as optimum structures to help with wealth planning, investments, and tax management. Family offices are viewing GIFT City, India’s first international financial services centre (“IFSC”), for the purpose of facilitating global investments in a structured manner.
Continue Reading IFSCA Relaxes Rules for Family Investment Funds in GIFT City
The following article was first published in the Mint newspaper on 17th January, 2023. The same was written by our Private Client team at Cyril Amarchand Mangaldas, who frequently publish their comments and opinions in the Mint. The online version of the article can be found here.
‘Should I write a will or form a trust to distribute my assets?’, mentioned setting up a trust with a daughter as trustee and adding one more person as trustee and beneficiary. As far as I know, a trustee cannot be the beneficiary. Please confirm if this is correct.
—Dinesh Haria
Continue Reading Can trustee also be a beneficiary while setting up a trust in India?
Fifteen years ago, senior citizens (citizens aged 60 years and above), were provided the benefit of statutory protection for certain vital rights under the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 (Senior Citizens Act). These rights included the right to reclaim property gifted or transferred to children or heirs.
Continue Reading Senior Citizens: Supreme Court clarifies position on reclaiming conditional gift
The following article was first published in the Mint newspaper on 7th December, 2022. The same was written by our Private Client team at Cyril Amarchand Mangaldas, who frequently publish their comments and opinions in the Mint. The online version of the article can be found here.
I want to transfer certain shares from my elder brother’s HUF (Hindu undivided family) account to my individual account as he is more than 75 years old now. I am not a member of his HUF. What is the legal procedure to transfer these stocks?
—Name withheld on request
Continue Reading What is the legal procedure to transfer shares from my brother’s HUF account?
The following article was first published in the Mint newspaper on 1st November, 2022. The same was written by our Private Client team at Cyril Amarchand Mangaldas, who frequently publish their comments and opinions in the Mint. The online version of the article can be found here.
I am 76 years old and hence want to write a will. I have two houses worth ₹2 crore. We are living in one of the houses and the other is rented for ₹75,000 per month. We also booked a shop having a resale value of ₹1 crore. I have ₹1.6 crore in mutual funds and ₹65 lakh in shares.
I have a wife and a daughter. I want all my assets to be given to my wife and thereafter to a trust that should decide on monthly distribution of income from the assets to my daughter and grandson. Thereby, I want to ensure that the assets generate wealth without being misused by anyone. Please guide me on how I should go about setting up a trust.
—Name withheld on request
Continue Reading Should I write a will or form a trust to distribute my assets?
The following article was first published in the Mint newspaper on 4th October, 2022. The same was written by our Private Client team at Cyril Amarchand Mangaldas, who frequently publish their comments and opinions in the Mint. The online version of the article can be found here.
My parents died and I am their nominee in the various fixed deposits (FDs) they left behind. The FDs will mature on different dates in the next two years. Can I withdraw an FD at the time of maturity? What would be rate of interest payable on these deposits from the date of death of parents till the maturity date. Also, is it compulsory for the nominee to withdraw all FDs after the death of the holder?
—Name withheld on request
Continue Reading Do FDs accrue interest after owner’s death?
The following article was first published in the Mint newspaper on 21st July, 2022. The same was written by our Private Client team at Cyril Amarchand Mangaldas, who frequently publish their comments and opinions in the Mint. The online version of the article can be found here.
What are the steps that a woman needs to take to transfer shares to her son upon the dissolution of a HUF (Hindu undivided family)?
—Name withheld on request
Continue Reading How a woman can transfer shares to her son on dissolution of HUF
The following article was first published in the Mint newspaper on 25th May, 2022. The same was written by our Private Client team at Cyril Amarchand Mangaldas, who frequently publish their comments and opinions in the Mint. The online version of the article can be found here.
My father, who was the karta of our HUF (Hindu undivided family), with my mother, elder sister and I as members, died two years ago. Thereafter, the bank where the HUF account is held is insisting on transferring it only to my elder sister.
Under the circumstances, is there any possibility for my mother to become the karta of the HUF? What is the relevant legal section that needs to be quoted for necessitating a transfer to my mother’s name? Additionally, will there be a change in the PAN (permanent account number) after transfer of the HUF? Will it also lead to a change in the name of the HUF?
—Name withheld on request
Continue Reading Can my mother who is not a coparcener be karta in HUF?
The following article was first published in the Mint newspaper on 16th May, 2022. The same was written by our Private Client team at Cyril Amarchand Mangaldas, who frequently publish their comments and opinions in the Mint. The online version of the article can be found here.
I am the karta of a Hindu Undivided Family (HUF) firm. My coparceners are my wife and son. I am retired and only have rental income from a house inherited from my mother through her probated will.
Can I show my rental income in my HUF bank account? And, as and when I sell that house, can I show the sale proceeds in the HUF account? For this, do I need to transfer the house to HUF? If yes, then what is the procedure? Isn’t the property automatically treated as HUF property, as I am also the karta of the HUF?
What process is required to be followed in case the property is to be bequeathed after the demise of the testator which is as per the registered Will in Delhi after the mutation has been done in the municipal records. It needs to be further clarified whether the process of probate is also to be followed in Delhi or if a succession certificate is sufficient and who would issue the same?
– Name withheld on request
Continue Reading Can I show my rental income in HUF account?
India’s diverse social fabric needs no introduction. In a developing country, ‘constructive’ philanthropy designed to cater to the fast-growing needs is particularly important. In a country with massive population such as ours, it’s often difficult for the government machinery to engineer a trickle down of every social welfare scheme. This is where Non-governmental organisations or associations (‘NGOs’) come in to play an important part. They work with the government and focus on their purpose, which can be religion, human rights, animal rights, poverty eradication, environment, etc. NGOs can be international, national, or regional and can adapt quickly and respond to the changing needs of the society faster than a government organisation which require executive and electoral approval for action.[1]
Continue Reading Foreign Contributions Regulations in India – Towards a Stricter Regime