Estate Planning Through Trusts

The concept of trusts goes back to the 1880s and in today's age and time trust structures are becoming increasingly important when individuals seek to plan their estate. While the prime objective of trust formation remains ring fencing of the assets, trusts structures are commonly being used in the following situations:

• Pursuing Philanthropy
• Maintaining inter-generational family control on business
• Provision for foster children or children with special needs
• Benefit of minor children, in the event of accidental death of both parents
• Marital discord

Under the Indian Trust Act of 1882, trust is defined as 'an obligation annexed to the ownership of property, and arising out of a confidence reposed in or accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner'.