Estate Planning for High‑Net‑Worth Indians in 2025: Wills, Trusts and Cross‑Border Wealth in a No‑Inheritance‑Tax Country
High‑net‑worth Indians today manage not just large portfolios, but complex lives—multiple homes, family businesses, global investments, and heirs spread across cities and countries. In this world, a simple one‑page will or a generic “family understanding” is no longer enough to protect wealth or relationships.maheshwariandco+3
Who Really Counts as an HNI for Estate Planning?
For estate‑planning purposes, “high net worth” is less about a precise number and more about complexity. Indian financial institutions often treat individuals with investable assets above a few crore as HNIs, and those above roughly Rs 25 crore as ultra‑HNI. But what matters for your estate plan is the mix of:
Business and promoter wealth
Equity in operating companies, LLPs, partnerships, or startups (listed or pre‑IPO).anandrathiwealth+1
Layered investments
PMS, AIFs, private equity, venture capital, unlisted shares, ESOP/RSU plans, alternative assets, art and collectibles.plindia+1
Multiple jurisdictions
Overseas homes, foreign bank and brokerage accounts, global ESOPs, NRE/NRO/FCNR deposits, and residencies or passports outside India.evaakil+2
If you recognise yourself in any of these, your estate planning needs to be treated as a project, not a one‑time formality.
No Inheritance Tax in India – But Plenty of Other Risks
India abolished estate duty decades ago and still does not levy a separate inheritance or estate tax as of 2025. That often leads HNIs to wrongly assume that “tax is not a problem” and planning can wait. The real risks lie elsewhere:eximpe+2
Tax on what heirs do with the assets
Heirs pay capital gains tax when they sell inherited property or securities, and income tax on rent, interest, and dividends from inherited assets.iwills+1
Legal and transactional friction
Probate delays, title defects, missing documents, and cross‑border approvals can lock up wealth for years—even when there is no inheritance tax.iwills+1
Future policy risk
Global discussions on inequality have revived debates about wealth and inheritance taxes, and Indian HNI advisors increasingly flag the risk of less generous regimes ahead.evaakil+1
Thoughtful estate structures now—clear wills, appropriate trusts, compliant cross‑border holding—are the best hedge against both today’s disputes and tomorrow’s policy changes.
Build a Single, Accurate Estate Inventory
Most HNI families vastly underestimate the first task: making a complete, usable list of what actually exists. Without this, even the best will fails in practice. A robust inventory should classify:
Financial assets
Bank deposits, bonds, mutual funds, PMS, AIFs, listed shares, unlisted shares, ESOPs/RSUs, insurance and annuities.anandrathiwealth+1
Real and operating assets
Residential and commercial real estate, agricultural land, warehousing, business premises, art, jewellery, vehicles, boats, aircraft and any other high‑value tangibles.maheshwariandco+1
Business interests
Equity in companies, LLP or partnership shares, sole‑proprietorships, carried interest in funds, promoter holdings and pledged shares.maheshwariandco+1
International holdings
Foreign real estate, overseas trading accounts, foreign currency deposits, international funds and alternative vehicles held under FEMA/LRS or via foreign entities.
For each item, record: current owner (individual, HUF, company, LLP, trust), location (India or abroad), documents (title, folio, contract), and any joint holder or nominee. This inventory becomes the backbone of your will, trust deeds, and tax advice—and dramatically reduces post‑demise confusion.
Why a Will Is Still the Foundation (But Must Be Smarter for HNIs)
Even in the most sophisticated structures, a well‑drafted Indian will remains the anchor for resident HNIs and for Indian assets of NRIs. But HNI wills need to go well beyond “I leave all my properties to my family”.iwills+1
A robust HNI will for Indian assets should:
Identify complex assets clearly
Demat accounts, PMS/AIF units, unlisted shares, partnership interests, ESOPs, and future payouts or earn‑outs must be expressly covered.iwills+1
Align with nominees and contracts
Many HNIs have nominees on bank accounts, mutual funds, insurance, and demat holdings; the law treats nominees largely as trustees, not automatic owners, so the will must clearly state the ultimate beneficiaries.pkcindia+1
Shareholder agreements, family settlements, buy‑sell or key‑man arrangements in businesses should be cross‑checked so the will does not contradict binding contracts.anandrathiwealth+1
Address minors and vulnerable dependants
If heirs are minors, differently‑abled, or financially inexperienced, the will should use staggered distributions, guardianship clauses, and (often) testamentary or private trusts.arpreferred+1
Platforms like iwills.in already specialise in capturing detailed asset lists, future assets and nominee/beneficiary distinctions, which is especially useful when an HNI’s holdings are spread across many institutions and cities.iwills+1
Private Trusts and Holding Structures: When Wills Are Not Enough
Beyond a point, a will alone may not adequately handle the scale, sensitivity, or continuity needs of an HNI family. That is where private trusts and holding structures come in.
Key use‑cases where HNIs should consider private trusts:
Asset protection and ring‑fencing
Moving certain assets (e.g., investment portfolios, surplus real estate, holding‑company shares) into discretionary or specific private trusts can protect them from personal disputes, creditor claims, or fragmentation in future generations.pkcindia+2
Smoother, private transmission
Trusts generally avoid probate, keep the distribution mechanism off public record, and allow a professional or family trustee to manage assets for multiple beneficiaries over a long horizon.plindia+1
Staggered and conditional benefits
Trusts can link distributions to age, education, milestones, or behaviour, and can separate control (trustees/directors) from benefit (children or extended family).arpreferred+1
Many HNI families combine:
A holding company or LLP which owns business stakes and key properties;
A private family trust which owns the holding entity; and
Individual wills that deal with residual and personal assets and appoint successors to trustee or director roles.plindia+2
This multi‑layered approach reduces direct contests over core operating assets and provides a framework for family governance.
Business‑Owner HNIs: Succession, Control and Continuity
For entrepreneurs and promoters, estate planning is really about who will run the business, not just who will own the shares. Poor planning here can destroy enterprise value quickly.
Key questions business‑owner HNIs must answer:
Who should control voting and management?
Splitting shares equally among children may be “emotionally fair” but “corporately disastrous” if it leads to board deadlock or conflicting visions.maheshwariandco+1
How do shareholder agreements interact with your will?
Rights of first refusal, drag‑along, tag‑along, and lock‑in provisions can restrict how and to whom shares can be transferred—even if your will says otherwise.pkcindia+1
Do key managers or non‑family executives need protection?
Clear succession for MD/CEO roles, management ESOPs and long‑term incentive plans can be integrated with family succession to avoid a talent exodus after the founder’s death.plindia+1
A coordinated approach—updating the company’s articles and shareholder agreements alongside the founder’s will and any holding‑company or trust structure—is critical for real continuity.
Cross‑Border Wealth: FEMA, DTAA and Multiple Wills
Modern Indian HNIs and NRIs often live in one country, own businesses in another, and hold portfolios in several more. Cross‑border complexity brings unique estate‑planning challenges:getbelong+2
FEMA and LRS compliance
Outbound investments under the Liberalised Remittance Scheme, foreign property purchases, and overseas structures must be compliant during life to avoid scrutiny and blockage on death.metainvestment+2
Tax residence and DTAA
Whether an heir is tax‑resident in India, the UK, the US, the Middle East or elsewhere can dramatically alter how dividends, interest and capital gains are taxed after succession.evaakil+1
Separate foreign wills (carefully drafted)
It is often advisable to have one will for Indian assets and separate wills for certain foreign jurisdictions, provided each expressly states it is limited to that jurisdiction and does not revoke the others.iwills+2
For NRIs with significant Indian wealth, specialised guidance is also crucial to avoid double taxation, ensure recognition of Indian wills abroad, and synchronise local inheritance rules with Indian personal law and the Indian Succession Act.rurashfin+2
Philanthropy and Legacy: More Than a Tax Deduction
Indian HNIs increasingly want their estate plans to reflect values and impact, not only wealth. Thoughtful philanthropic planning can:
Institutionalise giving
Through charitable trusts, Section 8 companies, or long‑term endowment funds aligned with education, health, culture, or environment.
Involve the next generation responsibly
Giving heirs roles on boards or committees of family charitable entities helps build stewardship, governance skills, and emotional connection to family values.kotakprivate+1
Optimise tax while preserving flexibility
Structures can be designed so that families retain strategic control over mission and corpus while meeting eligibility criteria for deductions and regulatory compliance.maheshwariandco+1
Your will and trust deeds should explicitly allocate philanthropic assets or percentages and should name successor trustees or directors to ensure continuity of purpose.
Common and Costly Mistakes HNIs Should Avoid
Even sophisticated HNIs repeat a few predictable mistakes that later explode into litigation:
Relying only on nominees and joint names
Nominees on bank, mutual fund, demat or insurance accounts are usually custodians for legal heirs, not final owners; if the will and nominations are not aligned, disputes are nearly guaranteed.iwills+2
Using generic will templates for complex estates
Off‑the‑shelf formats rarely address AIFs, foreign assets, layered entities, or complex family structures, leaving dangerous gaps and ambiguities.arpreferred+1
Ignoring foreign law and personal‑law interactions
Assuming “Indian law will apply everywhere” or that all children have identical rights under different personal laws can be fatal where marriages, religions and jurisdictions are mixed.metainvestment+1
Never updating the plan
Major liquidity events (IPO, trade sale), big foreign acquisitions, marriages, divorces, births and deaths all require timely updates to wills, trusts and nominations.anandrathiwealth+1
Avoiding these mistakes is less about complexity and more about discipline and periodic review.
Action Checklist for High‑Net‑Worth Indians and NRIs
To translate this into action, an HNI (or family office) can work through a simple but powerful checklist:
Prepare a complete, jurisdiction‑wise asset and liability inventory, including ownership mode and documents.
Draft or update a detailed Indian will that clearly covers complex and future assets and is consistent with business contracts and family arrangements.iwills+2
Evaluate the need for private trusts, holding entities or family offices to handle core business, surplus investment wealth, and long‑term family governance.anandrathiwealth+2
For cross‑border families, align FEMA compliance, DTAA implications and foreign wills with the Indian plan and personal law realities.iwills+2
Review and harmonise nominations, joint holdings, shareholder agreements and property records with the estate plan to reduce future friction.iwills+2
Schedule a structured review every 2–3 years, or after any significant life or liquidity event, so the plan evolves with your wealth and family.
Estate planning for high‑net‑worth Indians is ultimately about control, clarity and continuity—ensuring wealth moves where you intend, when you intend, with as little legal and emotional collateral damage as possible. Well‑crafted wills, intelligently used trusts and globally aware structuring give your heirs the one thing money alone cannot buy: order in a difficult time.