Family & Private Trust Registration
Hold and pass on family assets, deliberately.
A private trust holds family assets for named beneficiaries rather than for a charitable purpose. It is used for succession planning, for providing for a dependent who cannot manage assets themselves, and for keeping a business holding intact across a generation.
The deed is the whole of it. Who the beneficiaries are, whether their shares are fixed or discretionary, who the trustees are and what they may do, and what happens on a trustee's death — a deed that is vague on any of these is what a family dispute is later fought over.
The tax treatment follows the drafting: a specific trust with determinate shares is taxed differently from a discretionary one, and getting this wrong can attract the maximum marginal rate on the whole income.
What is included
- Structure advised — specific or discretionary
- Trust deed drafted for your succession intent
- Stamping and sub-registrar registration
- PAN and the trust's tax position explained
What we need from you
- PAN and Aadhaar of settlor, trustees and beneficiaries
- Details of the assets to be settled
- Property documents where immovable property is involved
- Your intentions on succession and distribution
Questions
How is a private family trust taxed?
A specific trust, where beneficiaries and their shares are determinate, is taxed broadly as the beneficiaries would be. A discretionary trust is generally taxed at the maximum marginal rate. The drafting therefore decides the tax, which is why it should be drafted with the tax position in mind.
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Get started with Family & Private Trust Registration
Tell us a little about the business and a chartered accountant will call you back. You will get a firm quote before any work begins.
- A qualified accountant on the call, not a call centre
- A firm quote before any work begins
- Your details are never sold or shared