Estate and succession planning for families and family businesses
Estate and succession planning decides who receives what you own, and who runs the business, after your death or incapacity. In India the result depends on your personal law, your will, the nominations on each asset and any trust or company document. Trouble usually starts when these point in different directions.
We review them together and fix the conflicts while you can still sign. We work with Hindu, Muslim, Christian and Parsi families, as the rules differ for each.
Last updated 8 November 2026 · VIVS Legal, Sanpada-Vashi, Navi Mumbai
Legal lead: Adv. Swanand Pandit, Advocate, High Court of Bombay
- Main documents
- Will, trust deed, nominations, shareholders' agreement, power of attorney
- Key case
- Shakti Yezdani v Jayanand Salgaonkar (Supreme Court, 2023): a nominee of shares is not the owner by that fact
- Personal law
- Hindu Succession Act 1956, Indian Succession Act 1925, Muslim personal law
- Tax
- India has no estate duty at present; check foreign rules if abroad
- Fees
- Contact us
On this page
Why isn't a nomination enough?
A nomination tells a bank, company or depository whom to deal with. It does not usually decide who owns the asset. In Shakti Yezdani v Jayanand Jayant Salgaonkar, decided on 14 December 2023, the Supreme Court held that a nominee of shares does not become absolute owner and that succession law still governs. Insurance has its own statutory rule for some beneficial nominees, so check each asset type.
The practical fix is simple: make the will and the nominations say the same thing. Our wealth management legal advisory page explains this check further.
How does personal law change the plan?
| Family | Main rule | Planning point |
|---|---|---|
| Hindu, Sikh, Jain, Buddhist | Hindu Succession Act 1956 | Daughters are coparceners by birth after Vineeta Sharma v Rakesh Sharma (2020). Separate ancestral from self-acquired property. |
| Muslim | Muslim personal law | A will generally cannot cover more than one-third of the estate without the heirs' consent, so gifts and other tools need careful thought. |
| Christian | Indian Succession Act 1925 | Will-making is broad. Intestate shares are set by the Act. |
| Parsi | Indian Succession Act 1925, Parsi provisions | Intestate rules differ from those for Christians, so a will should not rely on general advice. |
If there is no will, see inheritance without a will. For drafting, see will drafting and probate.
Family owned business succession planning: how does it work?
Three questions need separate answers: who owns the shares, who sits on the board and who runs the business each day. Families often answer only the first, and then a child who holds shares but no role feels shut out, or the reverse.
- Check the articles or LLP agreement for transfer limits
- Use a shareholders' agreement between branches, and reflect its transfer limits in the articles
- Name a successor and a date, with a fallback if that person says no
- Give exit routes and a valuation method for members who want to leave
- Separate personal guarantees and loans from the handover
The softer rules can go in a family constitution. A family trust can hold the shares where the family wants them kept together.
Documents to bring
- A list of family assets: property, shares, business interests, bank and investment accounts, in India and abroad.
- Existing wills, trust deeds, HUF papers, partnership deeds and shareholders' agreements.
- A family tree with the residential status of each member (resident, NRI, foreign citizen).
- Company shareholding and board details for family businesses.
- Any earlier family settlement or court order.
What decides the fee
- Structure advice only, or drafting and registration as well.
- How many family members, entities and countries are involved.
- Tax advice is given with your chartered accountant and is separate.
- Government charges (stamp duty, registration fees, court fees) are paid at actuals, separately from our fee.
We quote in writing once we have seen the papers. Call +91 8291849797 or book a consultation.
What if someone loses capacity?
A plan built only around death leaves a gap. Consider a power of attorney while the person is well, but take advice on how far it survives loss of capacity. If someone is already unable to decide, the family may need a guardianship order from a court. For mental illness, the Mental Healthcare Act 2017 lets a person name a representative in advance.
This page is general information, not legal advice. Tax points must be confirmed with your chartered accountant, and rules change, so we check the current text before acting on your matter.
Frequently Asked Questions
Still have a question?
Speak with our legal team about your matter with clarity and confidence.
Estate planning deals with how personal assets pass on. Succession planning usually refers to who takes over a business or role. A family with a business needs both, and they must fit together.
Generally not as owner. A nominee of shares or a bank account usually receives on behalf of those entitled under the will or succession law, though specific statutes can differ.
Usually yes. A trust covers only what is transferred into it, so a will deals with the rest.
India has no estate duty at present. Tax can still arise later, for example when an inherited asset is sold. Heirs abroad must also check the rules in their country.
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