Can a married girl arrange a HUF with simply her mother and father?
Can a Hindu household, comprising a married girl, her mother and father and her two very younger youngsters kind a Hindu undivided household (HUF)?
—Saranya NT
In this case, the daddy can arrange the HUF and change into its karta, whereas their married daughter would be the coparcener . Do observe that the mom will solely be a member of such HUF with restricted rights, as in comparison with the daughter.
Instead of an HUF, we advocate you to contemplate organising a belief. In such a case, the mother and father can arrange the belief as a settlor and different members of the family, together with the married daughter and her youngsters, will be beneficiaries. Their rights underneath the belief will be particularly custom-made, as in comparison with a HUF.
A non-public household belief helps in intra-generational switch of belongings, and in addition helps in attaining different goals like ring fencing of belongings, welfare of dependants, consolidation and augmentation of corpus, and so on.
I’m a British nationwide and have a part-paid property within the UK with excellent mortgage and a few investments. If there is no such thing as a will within the UK, the crown takes again the belongings. I’ve a brother in India who’s disabled and need him to be the first beneficiary of my will. In case I outlive him, I would like the whole lot to go to charity. Isn’t a belief one of the simplest ways to make it occur? But what are the tax implications?
—Name withheld on request
The info right here don’t point out you probably have any belongings in India. If you’re contemplating organising an Indian belief to your brother (who relies in India), that is the most suitable choice given your disabled brother’s necessities. You could think about using a company trustee or any such skilled who can put in place appropriate funding distribution mechanics to deal with your brother, say, for month-to-month medical bills and the like. His necessities could outweigh any onetime tax prices that will accrue when organising the belief.
Depending on the character of your belongings (if any) in India, you must contemplate making a separate UK will (coping with your UK property and some other native belongings there), and a separate one to your Indian belongings. Depending on the info, you may have separate executors for each wills.
Rishabh Shroff, companion & co-head Private Client, Cyril Amarchand Mangaldas.
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Updated: 08 Aug 2023, 10:29 PM IST
