Why Estate Planning in India Is More Urgent Than Ever

In today’s India, rising property ownership, family-run businesses, and expanding personal wealth are transforming middle-class financial lives. Yet, most Indians overlook one crucial legal task estate planning.

Have you asked yourself: What will happen to your assets if something unexpected occurs tomorrow? Will your loved ones be secure or will they face legal chaos?

Proper estate planning ensures that your wealth is distributed smoothly, your wishes are honoured, and your family avoids painful court disputes. Unfortunately, most Indians either delay or ignore it until it’s too late.

What Is Estate Planning?

Estate planning is the legal strategy used to manage and distribute your assets both during your lifetime and after death. It involves more than just writing a will. It includes:

• Drafting a legally valid will & trust
• Appointing a legal guardian for minor children
• Structuring wealth transfer in India to avoid legal delays
• Planning for taxes (including inheritance tax India, if reintroduced)
• Creating power of attorney and medical directives
• Nominating heirs in property, insurance, and bank documents

1. Legal Framework: Indian Estate Planning Laws

India does not have a single estate planning law. Instead, multiple acts apply depending on religion, location, and type of asset:

• Indian Succession Act, 1925 – For Christians, Parsis, Jews, and secular citizens
• Hindu Succession Act, 1956 – For Hindus, Jains, Sikhs, and Buddhists
• Muslim Personal Law (Shariat) Application Act, 1937 – For Muslims
• Transfer of Property Act, 1882 – For asset ownership and nomination rules
• Indian Trusts Act, 1882 – For setting up private or family trusts

Inheritance tax India was abolished in 1985. However, income from inherited assets is taxable. Plus, stamp duty and capital gains may still apply depending on asset type and timing.

2. Real-World Problems Caused by Poor Estate Planning

Indians face avoidable family feuds, stuck bank accounts, and property loss due to poor or no estate planning. Here are three common scenarios:

• Sibling Property Disputes: In families without a will, siblings often fight over ancestral or self-acquired property. Courts follow default succession laws, which may not reflect the deceased’s actual wishes.

• Business Succession Failures: Many family businesses collapse or get stuck during transition because owners didn’t form a will & trust, or assign nominees for accounts and shares.

• Legal Delays Due to Invalid Wills: In Murlidhar S. vs Ajay S. (Bombay High Court, 2022), a family’s multi-crore estate was delayed for years due to a handwritten, unsigned will. Proper legal drafting could have prevented the conflict.

3. How to Begin Your Estate Planning in India

Here are six key steps:

• Draft a Legally Valid Will: Include all major and minor assets. Get it signed by two witnesses. Make sure it reflects your intentions clearly and includes names, addresses, and the role of an executor.
• Set Up a Trust If Necessary: A trust is ideal for long-term asset management, especially if your heirs are minors, dependent, or not financially savvy. A will & trust combo allows you to protect assets and guide their use.
• Nominate Heirs in All Key Accounts: Nominations in bank accounts, mutual funds, insurance policies, and property papers simplify wealth transfer in India but they must complement your will.
• Maintain an Asset Register: List real estate, gold, demat accounts, digital assets (like crypto), loans, and liabilities. Include document locations for easy access by your executor or lawyer.
• Review Tax & Stamp Duty Implications: While there’s no inheritance tax in India currently, capital gains and property registration costs may affect wealth transfer. Consult a legal expert to plan this wisely.
• Review Your Plan Regularly: Revisit your estate planning every 3–5 years or after any major life event like marriage, divorce, childbirth, or asset purchase.

What to void in Estate Planning

• Avoid these common and costly mistakes:

1. Relying on verbal promises or informal agreements
2. Using foreign will templates not valid in Indian jurisdiction
3. Ignoring property in other states or countries, especially for NRIs
4. Failing to update documents after marriage, death, or new investments
5. Assuming nominations are enough – they aren’t substitutes for a will

When Should You Seek Legal Help?

• Consult a qualified legal professional if:

1. You own multiple properties, businesses, or joint ventures
2. Your family includes minor children, dependents, or blended households
3. You’re an NRI with Indian assets
4. Your estate includes ancestral property or agricultural land
5. You anticipate any family conflict or challenge to your will

Key Takeaways

Estate planning is not a luxury it’s a necessity for every Indian with growing assets. It prevents conflict, saves time and money, and secures your family’s future. Don’t leave your legacy to the courts. Create a clear, legally sound plan now with the right help.

Legal experts like Tigde Law Firm can simplify this journey and ensure your estate planning aligns with Indian laws and your unique needs.

Disclaimer

This article is intended purely for general informational purposes and should not be taken as professional legal advice. Laws, regulations, and legal interpretations may vary based on individual facts, circumstances, and jurisdictions. The information provided here does not create an attorney-client relationship and should not be relied upon as a substitute for expert legal counsel. Readers are strongly encouraged to consult a qualified, licensed, and experienced legal professional to receive accurate, case-specific guidance and Customised solutions for their particular legal concerns.

About Tigde Law Firm

Tigde Law Firm is recognised among the top 10 law firms in India, offering full-service legal expertise in complex areas including EOW, ED, corporate law, property, builder disputes, divorce, civil, commercial, and criminal cases. Headquartered in Thane with offices across Mumbai and Navi Mumbai, Tigde Law Firm serves clients nationwide with a strong team of over 100 lawyers. From local courts to the High Court and Supreme Court, TLF leads with trusted, result-driven advocacy.

Founded by Sachin Subhash Tigde and Shubhash Tigde, both experienced High Court lawyers in Maharashtra with a legacy of over 45 years and second-generation expertise, the firm has handled more than 5,000 cases. With 50+ in-house advocates across Mumbai, Navi Mumbai, and Thane, Tigde Law Firm is widely regarded as the best law firm in Thane and home to some of the most reliable advocates and lawyers in Thane. Specialising in property and redevelopment matters, RERA compliance, society disputes, divorce, NCLT, civil, criminal, corporate, and IP law, TLF delivers clarity and confidence to clients facing complex legal challenges.

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