Inheritance & succession
Writing a will, settling an estate or selling what you inherited: what has to be settled and in what order, and where we come in.
How people usually arrive.
You want to write a will and do not know where the tax sits in it.
You have inherited shares or property and are thinking about selling.
The nominations on the accounts do not match what the will says.
Someone in the family has died and nobody is sure who should be reporting the income until the estate is settled.
Where we come in.
What you can engage us to help with here, how it usually begins, and what is useful to have.
- Reading what is in place
- We list what is held and where, including anything outside India, read the nominations against the will, and mark where they disagree. That list is the agenda for the lawyer, and it is settled before anyone values or transfers anything.
- The tax that follows an inheritance
- We establish the cost and the holding period that pass with each inherited asset, from the original acquisition rather than the date of inheritance, so that an eventual sale is measured against the right number.
- Who reports what
- We settle who reports the estate’s income and for which period, register the legal heir with the department where that is needed, and prepare the returns of the people concerned, including the last return of the person who died.
- Passing the assets on
- We prepare the paperwork for passing shares, accounts and property on with companies, depositories, registries and banks, each with its own procedure, and keep the tax and filing side of the estate moving once entitlement is settled.
- Heirs abroad
- Where heirs live outside India, we work out their status and what they have to report here, and the route for moving assets or money to them.
It begins with a list of what is held and where, the will if there is one, and the nominations on each account.
Useful to have, if you have it
- A list of what is held and where, including anything outside India
- The existing will, if there is one
- Nomination details for bank, demat and insurance accounts
- Who the intended beneficiaries are and where they live
Where this needs another specialist
We do not draft wills or give legal opinions on their validity, and we cannot promise that an arrangement will be tax neutral. Where drafting or a legal opinion is needed, we work alongside a lawyer.
What becomes relevant, and when.
Each consideration at the stage it tends to arrive, explained once. The ones shared with other matters say so.
Before you act
- Ownership
- Nominations & wills
How an asset is owned, who is nominated and what a will says need to be read together. A nomination and a will can point in different directions, and for many kinds of asset a nomination on its own does not settle who the asset finally belongs to.
At transfer
- Who receives what
- Valuation
Some transfers, and some later sales, are expected to be supported by a valuation at the relevant date, for instance where an old asset’s cost has to be established. Whether one is needed is settled before the paperwork.
Shared with 05 Unlisted investments · 07 ESOPs & employee equity · On the map →
- Registrations & filings
Transmission of shares, property and accounts involves registrations and filings with companies, depositories, registries and banks. Each has its own documents.
Shared with 01 Starting a business · 03 SEBI compliances & registrations · 05 Unlisted investments
Afterwards
- Cost records
The cost that passes with an inherited asset is the number most easily got wrong. It comes from the original acquisition, not from the date of inheritance.
Shared with four other matters. See them on the map →
- Cost carried forward
An inherited asset carries a cost history with it. What the original holder paid, and when, is what the heir’s eventual sale will be measured against.
- Holding period
The holding period of an inherited asset may take in the time the previous owner held it. It changes how an eventual sale is treated.
Shared with four other matters. See them on the map →
- Capital gains
A sale by the heir raises a capital gains question, measured against the carried cost and the combined holding period.
Shared with seven other matters. See them on the map →
Every year
- Who reports the income
Until an estate is settled, and after, someone has to report the income the assets produce. Who that is, and for which period, is worth settling early.
At filing
- Income-tax return
The estate’s income, each heir’s share and any sale are reported in the returns of the people concerned, including the last return of the person who died. Who files what is decided first.
Shared with nine other matters. See them on the map →
- Residency
The residential status of the person who died and of each heir affects what is reported, and where.
Shared with five other matters. See them on the map →
- Heirs abroad
Heirs outside India bring a second country into the same estate: their residential status, the reporting there and the route for moving assets or money.