• How to protect family Assets?

I am a women of age 65yrs. I have 2 sons who are unmarried and about to get married. Recently I received property from my late grandfather after division between my sisters and a brother. I have some properties in my name which are purchased by me and my husband. I want to protect my family assets and want to stay those assets in the family. As divorce rate is raising I am fearing that properties may lost during any such unfortunate situation.
How to protect assets in such situations?
I am thinking of some ideas but didn't know which is good.
1)writing properties in name of grand children and making my son's as guardians to the properties. 
2)creating a trust. If this is good option. Who should be executor, trustee and banificiary. Kindly tell.
Or suggest any other good option.
Asked 3 years ago in Property Law
Religion: Hindu

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12 Answers

you can execute will wherein your sons will have life interest in properties and they will devolve on your grand children on demise of your sons 

 

2) will should be attested by 2 witnesses 

 

3) you can create a private trust . your sons can be trustees and also beneficiaries 

Ajay Sethi
Advocate, Mumbai
99781 Answers
8145 Consultations

1.The best way to protect assets is to create a trust. 

2. a  trust is a legal arrangement in which a trustee holds legal title of the property for the benefit of the beneficiaries. 

3.The settlor (the person who creates the trust) will appoint the trustee and beneficiaries and define the terms of the trust. 

4.The trustee then has the responsibility of managing the trust assets and distributing them according to the terms of the trust. 

5. The beneficiaries will receive the assets as per the terms of the trust.

6. if the settlor wants to protect the assets in the event of a divorce, the trust can be designed so that the assets are not considered as marital property and thus not subject to division in the event of a divorce.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Once is transferred to your son you lose all rights on it you can't compel the receiver by any condition. The only method is writing a legitimate will as per your conditions and 

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

Hello,

  1. You can write the properties as a Gift Deed to the grandchildren with the sons as guardians until they turn major.
  2. Alternately you can make a Will of the properties in favour of the grand children with any of your sons being appointed as the execotor of the Will.
  3. As proposed by you, you can also create a trust of which you and your sons can be trustees and you can state in the Trust Document the purpose of the formation of the Trust and that would take care of your intentions.
  4. You may choose any one of the above.

S J Mathew
Advocate, Mumbai
3619 Answers
175 Consultations

1. As you have rightly suggested execute WILL that after the lifetime of you, your husband, your sons,  the property should go to your grandchildren.

2.  Your suggestion of creating a trust is O.K. The executor has to be your husband during your lifetime and the trustees may be all the members of your family and beneficiaries are your children during their lifetime and afterwards your grandchildren.

Shashidhar S. Sastry
Advocate, Bangalore
5624 Answers
339 Consultations

Your children are not yet married hence there is no question of transferring the properties to your sons' names. 

Creating 

A private family trust is a legal arrangement in which a trustee holds and manages assets on behalf of the beneficiaries of the trust.

  • A private family trust is a powerful tool for transferring property from one person (owner) to another for the benefit of an individual or a defined group of persons. Generally, it is established by a family member for securing the future of their dependents and relatives.
  • The most important reason for setting up a family trust is wealth protection, family succession planning, and asset transfer primarily for the benefit of family members, both during and after the settlor’s lifetime.
  • The Settlor is a party or an individual who establishes the trust. They place an asset they own into the trust by transferring it to another individual or party known as a trustee. It comes along with plain instructions that the asset be held for the profit of a third party.

A private family trust can be used to provide for specific family requirements, such as education, health, travel, or marriage, by acting as a vehicle that maintains assets specifically for that purpose, multiplying, safeguarding, managing, and securing them for that reason.

  • As an owner of a revocable trust, you may change the terms of the trust at any time.
  • You can remove beneficiaries, designate new ones, and modify stipulations on managing the assets within the trust.
  • As the owner retains such a level of control, the assets in the trust are not shielded from creditors. If they are sued, the trust assets can be ordered liquidated to satisfy any judgment put forth.

Therefore, if you can  create a trust and park all your assets into it for the benefit of the beneficiaries as per your desire and design. 

T Kalaiselvan
Advocate, Vellore
89980 Answers
2492 Consultations

- As per law, your daughter-in-law cannot claim any right over your property and assets during your life time , and even she is even not entitled to stay in your house against you consent. 

- Since, your sons are unmarried presently , then in anticipation , you cannot write a Will or can execute any other documents in favour of your grandchildren. 

- Further, if you will make trust after making the beneficiary to your sons, then after your demise , she can create trouble for your sons

- However, after the marry of sons and birth of child , you can write a Will after mentioning that during your life time none will have  right to claim , and the property will go to the grand child , except the sons will have right to use the properties.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Yes, it's possible to write a WILL naming unborn grandchildren and nominating your sons as natural guardians, which likely protects your properties in the situation of unfortunate divorce situation. However, what if your sons do not beget children?. For that also you have to name your sons in such exigencies.

Shashidhar S. Sastry
Advocate, Bangalore
5624 Answers
339 Consultations

You can execute will wherein your sons  will have life interest in property 

 

2) the interest on the property needs to vest in an existing living person, then subsequently transferred to the unborn person upon their existence. Only Absolute interest can vest with an unborn child.

Ajay Sethi
Advocate, Mumbai
99781 Answers
8145 Consultations

Yes it is possible but she must be conceived 

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

Your sons are not married yet, hence there is no question of children born to them.

The Will what you write can be cancelled and new Will also can be written at a later date suiting your convenience.

The properties that are on your name shall remain on yor name alone till your lifetime.

Even if you transfer the properties to your sons by a settlement deed, they will remain their own properties, in which their spouses cannot claim any share in it as a right at least not during their lifetime.

Therefore there is no need to be worried about this at this stage neither you are required to transfer the properties on anyone's name at this stage because the properties on yor name are safe and secured without any danger to them.

 

 

 

 

T Kalaiselvan
Advocate, Vellore
89980 Answers
2492 Consultations

As per Indian laws, you have the right to distribute your properties in the manner you desire through a will. You can make a will in the name of your grandchildren and appoint your sons as guardians to the properties. However, please note that the will can be challenged in court by legal heirs if they feel that it is not a genuine will or that you were not in a sound mental state while making the will.

 

Another option is to create a trust with your grandchildren as beneficiaries and your sons as trustees. The trust can be created during your lifetime or in your will. A trust will ensure that your properties are managed and protected for the benefit of your grandchildren and future generations. The trustee has the responsibility to manage the trust as per your wishes.

 

As for appointing a trustee, you can appoint a trusted family member or friend, or even a professional trustee if you feel that it is necessary. The executor of the will or the trustee of the trust must be someone who is honest, trustworthy, and has the ability to manage the properties and fulfill their responsibilities.

 

It is not possible to create a will in the name of an unborn grandchild as the grandchild has no legal existence yet. However, you can create a will and name your grandchildren as beneficiaries, and your sons as guardians or trustees.

 

 

 

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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