I own three properties. How can I ensure that my three children receive a portion of the properties while allowing my wife to reside in one of these until her demise?
—Name withheld on request
As per your query, we assume that you are a Hindu and that there is no right or interest of any other person in the properties and that the same were held only by you. And that the property is purchased by you and is not an ancestral property.
It is strongly recommended to consult with an estate planning lawyer in India to discuss the best way to achieve your goals. Estate planning laws are complex and vary depending on several factors, including your location, religion, and the type of property you own. A lawyer can provide specific guidance based on your situation and ensure your wishes are carried out correctly. However, here are some options to consider:
Will: You can create a will specifying how all your assets, including the three properties, are to be distributed after your death. This will can include a life interest provision for your wife, granting her the right to reside in one or all of the properties until her passing. After your wife’s lifetime, the ownership of the property will then pass on to your children as outlined in the will. You can either assign one property each to the respective child or all the properties bequeathed equally to all the children.
Private family trusts: Setting up a trust can offer more flexibility and control over your assets after your lifetime. You can create a trust either during your lifetime or through your will, that holds the ownership of the properties and dictate how the income and eventual ownership will be distributed among your wife and children. This can be particularly beneficial if you want to provide for your children’s financial needs while your wife is still alive.
Other options: Depending on your circumstances, other options might be suitable, such as creating joint ownership with your wife for one or more properties, gifting shares of the properties while you are still alive, or utilizing reverse mortgages to provide your wife with income while she resides in the property.
Clearly communicate your wishes with your family, especially your wife and children. Open communication can help avoid misunderstandings and potential conflicts later.
Review and update your estate plan regularly, especially if your circumstances or family situation change.
Choose an experienced and trustworthy lawyer to help you draft your will or create a trust.
Neha Pathak is head of trust and estate planning, Motilal Oswal Private Wealth.
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Published: 06 Feb 2024, 11:19 PM IST
