There are many insurance companies that will come forward to insure her against any malpractice claim, negligence, damages, compensation etc. during the course of her profession. Medical and other professionals do take such insurances abroad.
I and my wife live in UK and we are PIO's. My wife works in a high liability profession, where litigations and compensation claims occur frequently. Im concerned for the future in case I'm not alive, when my wife inherits my assets. What is the best way to protect these assets in India - Pune (Apartment, NRE bank accounts etc) from any potential overseas creditors she may have to face (from any professional practice claims)?
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
There are many insurance companies that will come forward to insure her against any malpractice claim, negligence, damages, compensation etc. during the course of her profession. Medical and other professionals do take such insurances abroad.
I know somebody recently faced this situation. I am assuming a worst case scenario where malpractice insurance does not cover the entire limit (where I'm not alive and she faces a liability claim). What is the best way to protect my assets in India, so my wife can have my Pune apartment / bank accounts etc. - Are PIO's covered under the Married Women's Property Act? - Would it make sense to create an Indian registered will stating that my apartment should be for my wife only, and no access to any potential creditors she may face? - I'm avoiding the concept of Trust owing to the complexities and compliance involved Pls share your thoughts / suggestions?
Your assets will not be subject to any claim against professional risks of wife. Your property is your property, for satisfaction of such claim only personal property of professional involved is subject matter of claim any against misconduct/negligence being her personal liability. There is no vicarious liability in such cases.
What happens in an event of my death - after which my wife inherits the property / bank accounts and becomes the legal owner? I'm looking for provisions that will protect her from the worst in such scenarios?
Executing a will bequeathing such properties to kids/near relatives will save such properties from claim.
Section 6 of the MWP Act allows an individual to buy a policy for himself under the Act and create a trust for the same
2)In this policy, the policyholder (the husband) loses all control over the policy with the exception of paying premiums and the policy becomes a property of his wife in the form of a trust where the beneficiary of the trust is only his wife and children.
3)creditors would not be able to claim the funds from this policy as the policy from the very first day is the property of a trust and not his personal estate.
4)the Act also empowers the wife to buy a policy for herself independently of her husband which would also be considered her separate property as if she is unmarried. Thus, if your wife is an earning member of the family and has an income that is substantial to buy life policies, you should encourage the idea as it’s totally in line with the concept of insurance protection;
5) Any married man residing in India (except Jammu and Kashmir) can avail benefit under this Act.
You can create irrevocable trust, as the property belongs to the trust and not the settlor, creditors cannot lay claim on the asset.
1. Ordinarily, Judgement and order passed by a foreign court based on foreign Act s not enforceable in India.
2. So, your Assets in India will ordinarily be well fortified legally in India.
3. However, you can create a Trust in India which will look after your Indian Assets for the maintenance and welfare of your wife in case of your demise.
1. Validity of conditional will can be challenged.
2. If you want to avoid creation of Trust, you can gift/Will your Assets to your mother or any trusted person with living and maintenance right of your wife on/from the said Assets.
Your wife should not disclose the assets she possess in India especially during such compensation claims.
She should restrict the revelation of the details of her assets to the assets lying on her name in that country alone.
Moreover this question will arise only after she inherits yoyr properties after your lifetime, which will not reflect in the list of her assets.
She should not voluntarily disclose the details after acquiring the properties through such inheritance.
1. If your mother is not alive, your wife will inherit your Assets after your demise being your sole legal heir.
2. You can Will the property in favour of your trusted friend with her living/maintenance right as suggested above.
It is not automatic that the properties lying on her name in the foreign country would be attached by the court of a different country until and unless the details of her assets are provided by the claimant before the trial court with documentary evidences.
There is no way to protect her interests other than by adopting silence over the properties lying on her name at overseas.
Besides it is cumbersome process for the foreign creditor to attach her assets lying in India towards his claim even after getting a decree in his favor by court of his country.
The claimant cannot file a suit for recovery directly in India if the cause of action has not taken place in India.
There is no provision in law to attach her property in India towards recovery of the claim amount for the debts at a foreign country
She should not voluntarily disclose the details after acquiring the properties through such inheritance.
Besides it is cumbersome process for the foreign creditor to attach her assets lying in India towards his claim even after getting a decree in his favor by court of his country.
The claimant cannot file a suit for recovery directly in India if the cause of action has not taken place in India.
Dear Client,
The best way would be to write a will or make a gift deed. This will ensure that your property goes to the person you want to. Also, don't forget to get the will/gift deed registered. But still if you have kept the property as collateral or have taken any loans the liabilities will also shift to her. It is better if you clear your debts sooner.