At Yellow, we understand that every individual has unique financial goals and objectives. Our Private Trust services are tailored to meet your specific needs and provide personalised solutions that align with your vision for the future.
At its core, a Private Trust (or Family Trust) is a separate legal entity that holds assets for the benefit of the Beneficiaries.
A Private Trust is established by a “Settlor”
A "Trustee" is appointed by the settlor to manage asset distribution for the benefit of the Beneficiaries. They can be individuals or professionals.
The entire arrangement is guided by a “trust deed” - a legal document that outlines the terms, conditions, and objectives of the Private Trust.
The Beneficiaries are the family members, children, etc. who will receive benefits (income, proceeds from asset sales, etc.) from the Trust.
We have seen first-hand the trouble that families face due to poorly drafted Wills, which can end up costing them considerable time and money and increases the chance of legal disputes. There are many best practices that go into creating a high-quality Will, and each person’s situation is different. Putting all this together requires expertise that can only come from legal knowledge, and decades of practical experience.
A Private Trust (or Family Trust) is an advanced estate planning tool that provides significant advantages, ensuring seamless asset management, enhanced privacy, and the ability to protect and provide for your loved ones in a structured manner.
A Trust can help safeguard assets from creditors, lawsuits, and other legal claims. It can also protect from inheritance tax or estate taxes, if applicable in your jurisdiction.
A Trust can avoid probate formalities and ensure that your assets pass seamlessly to your beneficiaries without delay, even in unanticipated circumstances.
A Trust can provide financial security for your family members, care for minors or dependents, and for those with special needs.
Creating a Trust can help prevent disputes and delays for family members by providing a clear structure that is difficult to challenge in court.
Our initial step involves a comprehensive consultation with our seasoned legal experts. With their combined experience of over 50 years in creating Trusts for families in India and abroad, we will delve into your unique circumstances. This helps us better understand your aspirations and objectives, paving the way for a personalised Trust strategy.
Our experts will work closely with you to conceptualize a tailored structure that aligns perfectly with your needs (revocable Trust, irrevocable Trust, discretionary Trust, determinate Trust etc.). We then translate this into a meticulously drafted Private Trust Deed, capturing your specific wishes and intentions.
Our team takes charge of the entire registration process, ensuring your Trust's compliance with Indian legal requirements. As a final step, we provide expert assistance in transferring assets to the Trust, considering potential tax implications and ensuring a seamless transition that safeguards your financial interests.
While often used interchangeably, a Will and a Private Trust/Family Trust are two very different tools used for estate planning.
Simply put, a Will outlines your wishes for the distribution of your assets after your passing, while a Trust takes effect immediately and allows you to house assets within a secure vehicle managed by a trustee on behalf of your beneficiaries.
A Trust can provide more control over the distribution of income from assets, timing and conditions of asset sale, in addition to key benefits like consolidation of assets, seamless transmission, incapacitation planning, minimising estate taxes, and avoiding probate.
There are various types of Private Trusts, each designed to serve specific purposes:
Revocable Trust: Allows the Settlor to retain control over the assets during their lifetime and modify the Trust deed as needed.
Irrevocable Trust: Once established, the Trust deed cannot be altered without the consent of all Beneficiaries. This type offers potential estate tax benefits and enhanced asset protection.
Revocable and irrevocable Trusts can further be classified into determinate and discretionary Trusts. In a determinate Trust, the Beneficiary's share is specified. In contrast, a discretionary Trust doesn't have a fixed Beneficiary share; instead, the Trustee or Settlor, as the case may be, determines the benefits given to the Beneficiary.
In the case of a Revocable Trust, you can make changes at any time during your lifetime, as long as you are mentally competent to do so, and the Trust deed allows it. You can amend the Trust document or create a new one entirely, providing flexibility in adapting your estate plan to changing circumstances.
An Irrevocable Family Trust deed will require consent of all Beneficiaries prior to changes.
Yes, it is advisable to have a Will even if you have a Trust. A Will helps plan for assets that were not transferred to the Trust, those unintentionally left out of the Trust or for naming guardians for minor children. It can also act as a “pour-over Will” to transfer any assets into the Trust that were not previously included.
In India, transferring immovable property to a Trust via a Will also helps to avoid stamp duty.
The cost of creating a Trust can vary depending on its complexity, and location of family. At Yellow, we offer competitive and transparent pricing for our Trust creation services (including consultation, Trust deed drafting and finalisation, registration and asset transfer). To get a personalised quote, reach out to our team, and we’ll be happy to assist you. Get in touch
You can transfer many types of assets, from your life insurance policy to movable and immovable property, financial investments, deposits, mutual funds, and more.
CEO & Founder,