Private Family Trust is offering better protection against creditors and family disputes compared to personal ownership or companies.
2)Existing properties can be gifted/transferred to a TrustStamp duty and registration fees are applicable on transfer in most states, generally similar to a gift deed (varies by state). If transferred to a company/LLP, it is a taxable transfer. Transferring to a Trust (where the settler is the sole beneficiary initially) might not attract capital gains
3)Trustees can be restricted from selling, mortgaging, or renting property without the written consent of the Settlor or a "Protector" (usually you or a trusted advisor) A trust can be challenged if created to knowingly defraud existing creditors, but not for future, unforeseen liabilities if structured correctly.
4) Creditors can go after personal assets, but if assets are in a Trust, they are generally protected.Personal liability does not attach to assets held by a Trust.
5) A trust offers the best protection against marital claims on property, as the property belongs to the trust, not the individual.
- Inheritance: Smooth, non-probate, and immediate transfer of beneficial ownership.
6) The government can seize assets under a trust if they are proven to be the proceeds of a crime.
- To avoid benami risk, the trust must be registered (Trust Deed), PAN card obtained, and all properties registered in the name of the Trust. The transfer must be genuine and compliant with RBI regulations (usually by way of gift)
8)stamp duty registration charges vary from state tu state