- Ownership records, wills and nominations should all say the same thing.
- An HUF is a separate taxpayer with its own basic exemption.
- Gifts from relatives are generally tax-free, but must be documented and, for property, registered.
- Private trusts suit specific needs; they are not a default for every family.
- Children living abroad bring FEMA rules into succession planning.
On this page
Ownership: who holds what?
List every asset and how it is held: individually, jointly, through an HUF, a company or LLP, or a trust. Joint holdings with survivorship clauses and nominations often do not match the will, which causes disputes later.
Is an HUF still useful?
A Hindu Undivided Family is a separate taxpayer with its own basic exemption. Under the new tax regime the nil slab is Rs 4 lakh from financial year 2025-26, and Rs 2.5 lakh under the old regime. An HUF holding family property can therefore reduce overall tax, but income from gifts by members to the HUF can be clubbed, so it needs careful use.
Gifts within the family
Gifts of money or property from relatives, as defined in the tax law, are generally not taxed in the recipient's hands. A gift of immovable property must be made by a registered gift deed, with stamp duty as the state requires; some states charge concessional duty for gifts to close relatives.
Wills, trusts and nominations
- A clear will covering every class of asset.
- Nominations that match the will; a nominee holds for the heirs.
- A private trust where an asset must stay undivided or a dependant needs protection.
- Probate is now optional, but useful for large or contested estates.
See wills and probate and trust registration.
What changes when children live abroad?
NRI and OCI children can inherit Indian property, but cannot buy agricultural land, and their ability to take money out is limited by FEMA's repatriation rules. Succession planning should decide which assets pass to them and which to resident family members, alongside your financial planning.
Wealth management services for HNIs: where legal advice fits
Your financial adviser chooses investments. A lawyer checks ownership, documents, succession and regulatory issues, and handles disputes. Our wealth management legal advisory page explains our scope.
Founder and Managing Partner, VIVS Legal. BLS, LL.B, LL.M, PGDBM, JAIIB.
