Private Family Trust in India
Your family's wealth deserves more than a will. A private family trust lets you protect, control and pass on wealth across generations - with privacy over its internal arrangements, lifetime management and continuity a will alone cannot give. NexGen advises Indian families and NRIs on getting the structure right.
What a will alone cannot do
A will is essential - everyone needs one. But a will only takes effect on death and then stops working. These are the gaps a private family trust is built to close.
It operates only after death
A will does nothing during your life or if you lose capacity. A trust manages your assets now, through incapacity, and beyond.
It can be contested
Wills are challenged on capacity, undue influence or fraud. A properly funded lifetime trust is far harder to overturn.
No protection from claims
Assets left outright to an heir are exposed to that heir's creditors, divorce or poor judgement. A trust can ring-fence them.
No lifelong provision for dependants
A will hands a minor or special-needs beneficiary a lump sum with no one to manage it. A trust provides staggered, managed support.
It becomes visible if contested
A will can enter the public record once proved in court. A private family trust is not filed in court - though note the deed is registered at the Sub-Registrar and, for immovable property, becomes a public record; privacy applies to the trust's internal arrangements.
NRI & FEMA complexity
Managing Indian assets from abroad without a compliant structure risks FEMA issues and delay. A trust can be designed for cross-border families.
Will, trust, or both? A 60-second check
Answer a few questions and we'll point you to the right starting structure - and the trust type that fits.
Indicative only - not legal advice. Your specific facts may change the answer.
How a private family trust compares with a will
| Consideration | Will alone | Private family trust |
|---|---|---|
| Operative during your lifetime | No | Yes |
| Manages assets if you lose capacity | No | Yes |
| Protection from creditor / matrimonial claims | No | Yes (well-structured, irrevocable) |
| Stays private | Can become public if contested | Not filed in court; note a deed registered for immovable property is public at the Sub-Registrar |
| Provision for minors / dependants | Limited - outright transfer | Fully customisable, staggered |
| Harder to contest | Open to challenge | A funded lifetime trust is harder to overturn |
| Names a guardian for minors | Yes (only a will can) | No |
| Cost & compliance | Low | Higher - setup, possible stamp duty, ongoing filings |
A will and a trust serve different purposes and work best together - a trust for the assets and people that need protection, a will for everything else and to name a guardian. Read the complete Will vs Trust guide.
Which private family trust is right for you?
We design each trust around your family. These are the structures we use most - tap any to learn more, or take the check above.
Minor Beneficiary Trust
Manage and stagger a child's inheritance until they are ready - not handed over at 18.
Learn more →Special Child / Needs Trust
Lifelong, managed care for a special-needs or dependent child after you are gone.
Learn more →Business Value Protection Trust
Keep a business intact across generations; separate control from ownership.
Learn more →Asset Protection Trust
Ring-fence wealth from creditors, guarantees, business risk and disputes.
Learn more →Credit Protection Trust
Insulate family assets from lending and personal-guarantee exposure.
Learn more →Daughter Protection Trust
Secure a daughter's financial future on terms you set.
Learn more →Testamentary Trust
A trust created through your will, springing up to manage assets on death.
Learn more →Regular Family Trust
A general private family trust to hold, protect and pass on family wealth.
Learn more →NRI Family Trust
FEMA-aware structuring for non-resident families with Indian assets.
Learn more →Trust services
Trust Deed Drafting
Bespoke, legally precise trust deeds - not a fill-in template.
Learn more →Trust Registration
Stamping, registration and PAN, handled end to end.
Learn more →Trusteeship & Advisory
Professional / corporate trusteeship and ongoing trust administration.
Learn more →Also building: Living (inter-vivos) Trust, Life Insurance Trust and Special-Purpose Trust pages - content ready from your existing material.
Understand the basics
Deep, current-law guides written by our team - the same thinking we bring to a consultation:
- Will vs Private Trust in India: the complete decision guide (15 family situations)
- Family Trust vs Will: which does your family need?
- The uses and benefits of a trust · Trust vs HUF · Nominee vs legal heir
Our advisory process
You proceed only when you understand and agree with every detail. No pressure, no rushing.
- Confidential discovery meeting - a no-obligation conversation about your family, assets and intentions. Complimentary.
- Bespoke trust design - we draft a structure tailored to you: beneficiaries, trustee powers, succession mechanics. Weeks 1-2.
- Review and revision - you review the draft deed in full; we revise until you are completely confident. Weeks 2-4.
- Execution and registration - we manage stamping, notarisation and registration. You sign once. Weeks 4-6.
- Ongoing advisory - annual reviews, trustee guidance, asset additions, as your circumstances evolve. Ongoing.
Who we advise
Families and individuals who have built wealth and want to protect it (typically total assets above ₹50 lakh):
Business owners & promoters
Separate personal wealth from business liability; plan a clean succession.
Read moreHNI families
Consolidate properties and portfolios under one protected structure.
Read moreParents of young children
Enforceable, structured provision for minors' futures.
Read moreNon-resident Indians
FEMA-aware structuring for Indian assets, handled remotely.
Read moreMedical & legal professionals
Protect family wealth from professional-liability claims.
Read moreFamilies with dependants
Long-term provision for members needing ongoing care.
Read moreLed by Dr. Deepak Jain & our estate-planning team
With over 14 years in succession and estate planning, Dr. Jain (CTEP, CWM) leads a team committed to protecting your legacy - author of practitioner works on private family trusts and wills in India, and authorised faculty at AAFM India.
Common questions
How does a private family trust differ from a will?
A will takes effect only on death and then stops governing; a trust operates during your lifetime and after. A trust gives lifetime management, protection from claims, privacy and continuity through incapacity - none of which a will alone provides. They work best together: a trust for assets that need protection, a will for the rest and to name a guardian.
Will I lose control of my assets by placing them in a trust?
Not necessarily. As settlor you can also serve as a trustee and retain day-to-day control; a revocable trust can be amended or dissolved during your lifetime. We structure the trust so protection is in place without diminishing your authority - though note a revocable trust offers less asset protection and is taxed in your hands.
Does a trust save tax?
Not by default. India has no estate or inheritance tax, so a will transfer is already tax-neutral at death. A specific trust is taxed in the beneficiaries' hands at their slab; a discretionary trust is generally taxed at the maximum marginal rate. We design each trust to be legally sound and tax-aware, and provide an analysis specific to your assets - we never present a trust as an automatic tax-saver.
Is probate still required for a will in India?
No - probate is no longer mandatory anywhere in India after the 2025 omission of Section 213 of the Indian Succession Act. It can still be useful where there is a dispute, competing wills, unclear title, or an institution insists. A trust holds assets outside the estate, so they pass within the trust regardless.
What assets can a private family trust hold?
Residential and commercial property, listed and unlisted shares, mutual funds, deposits, bonds, business interests, jewellery and insurance proceeds. Agricultural land is subject to state-specific rules, which we address for your situation. Settling immovable property into a trust attracts state stamp duty.
Can NRIs set up a trust for Indian assets?
Yes. We advise NRIs in the UK, US, UAE, Singapore and Australia on FEMA-aware structures for Indian holdings, conducted remotely. The residence of trustees needs care - we usually keep an India-resident trustee for the trust's place of effective management.
Your family's future deserves protecting today
Speak with an advisor at no cost. Understanding your options takes one conversation - in English or Hindi, in person or remotely.
Book a free consultationAuthor-reviewed by Dr. Deepak Jain (CTEP, CWM) on 28 June 2026. Sources: Indian Trusts Act 1882; Indian Succession Act 1925 (incl. 2025 omission of s.213); Income-tax Act 2025. This page is for general educational purposes and is not legal or tax advice; please consult a qualified professional.