Financial security is rarely just about accumulating wealth. What happens to that wealth after a person is gone matters just as much, yet it’s a subject many families put off discussing until it’s too late. That gap in awareness is precisely why Ashutosh Financial Services continues to organise sessions that go beyond investment advice and into the practical realities of planning for the future, including how assets are passed on and what that means for the people left behind.
On 19th December 2021, the firm hosted a webinar titled “Estate & Tax Planning through Wills,” designed specifically for high-net-worth individuals. The session was conducted by Daxesh Kothari, and it addressed a concern that becomes increasingly relevant as personal wealth grows more complex: how to ensure that assets are distributed according to one’s wishes, with minimal legal ambiguity and tax inefficiency. For an audience managing diverse portfolios, property, and family businesses, a well-drafted Will isn’t a formality; it’s a tool that determines whether their intentions are honoured or contested.
The session opened with the legal foundation of succession in India. When a person passes away, their assets are transferred either through testamentary succession, meaning a valid Will was left behind, or intestate succession, where no Will exists. In the absence of a Will, distribution is governed by personal law: the Hindu Succession Act applies to Hindus, Sikhs, Jains, and Buddhists; Muslim Shariat Law governs Muslim inheritance; and the Indian Succession Act applies to Christians and Parsis. Without a Will, assets go to legally defined heirs rather than the people the deceased may have actually wanted to benefit, which is often the first reason families run into disputes.
A significant part of the discussion focused on what actually makes a Will sound and enforceable. It should be in writing, whether on stamp paper or plain paper, and must clearly identify the person making it along with confirmation that the assets being bequeathed are genuinely theirs to give, rather than jointly held family or HUF property. Equally important is naming beneficiaries precisely, including any reasoning for excluding someone, since ambiguity here is often what leads to later challenges. The session also touched on planning for residual assets not specifically mentioned in the Will, and on building in contingencies, such as what happens if a spouse predeceases the person making the Will.
Execution details received particular attention, since even a well-intentioned Will can be challenged on procedural grounds. Two adult witnesses must sign, and their identities should be clearly recorded. It’s advisable for these witnesses to also provide a separate declaration confirming their role, which can later support the probate process in court. Whether to sign before a Notary Public or opt for registration depends on individual circumstances, but either step adds a layer of credibility that can prove valuable if the Will is ever questioned.
The webinar also addressed a question many people overlook: when should an existing Will be revised? A new Will becomes necessary when a named beneficiary passes away, since the original bequest can no longer be honoured under the Indian Succession Act. It’s also advisable to draft a fresh Will if a witness or executor dies, or when there’s a meaningful change in the person’s movable or immovable assets.
On the tax side, the session clarified that amounts received through a Will or inheritance are exempt from tax under Section 56(2) of the Income Tax Act, along with gifts from close relatives and sums up to Rs 50,000 from any source. This led to a practical comparison: whether it’s better to transfer property as a gift during one’s lifetime or through a Will. Both routes are tax-exempt, so the real deciding factors become whether the Will is likely to be contested and the relative cost of each method of transfer, since gifting can carry higher transfer costs than bequeathing through a Will.
One of the more advanced strategies discussed was the creation of a discretionary family trust as part of a Will. Ordinarily, discretionary trusts are taxed at the maximum marginal rate, but when established through a Will, they can be taxed as a separate entity at regular slab rates, with deductions such as Section 80C still available. Such trusts are particularly useful for providing for dependents in a structured way, allowing trustees discretion over how income is distributed among beneficiaries and even permitting the eventual winding up of the trust.
Sessions like this reflect a simple belief that guides much of what Ashutosh Financial Services does: that sound financial decisions, including decisions about what happens after one’s lifetime, are best made with clarity and preparation rather than left to chance. The firm remains committed to creating spaces where such conversations can happen well before they become urgent.
