Silent expectations, legacies turning into legal chaos Property in India carries emotional and financial weight. As wealth of Indians is increasing, the focus shall not be only on accumulation but to desired transfers also. Real estate will sit at the centre of that journey Over 65% of civil cases in India are linked to land and property disputes, i.e., family feuds fill up over half our courts. These legal disputes can drag on for years, even decades and all the related parties suffering immensely. In India, when it comes to property, emotions run as deep as the value is high. Whether a family is wealthy or middle class, the story is often the same: vague succession, silent expectations, and a legacy that turns into a legal mess. This is why succession and estate planning can no longer be postponed as something ‘for later’ or ‘for the ultra-rich’. It is responsible financial decision. A global study by The Williams Group, a United States-based wealth advisory firm, found that nearly 70% of wealth is lost by the second generation and up to 90% by the third when succession planning is inadequate. In India, the wealth engine is accelerating. As many as 1,687 Indians now have a net worth of Rs.1, 000 crore or more. In 2025 alone, 103 initial public offerings raised a record Rs.1.75 lakh crore, according to Prime Database, marking one of the largest capital formation years for India’s markets. Families spend decades building property portfolios and the value is eroded by fragmented ownership, unclear rights, emotional disputes, liquidity crunches, and tax inefficiencies. Well-structured estate planning preserves both capital and continuity. Role of family trusts: Family trusts have emerged as one of the most effective tools for incorporating property into succession planning. By transferring real estate into a trust, the settlor separates ownership from management. Trustees administer the assets for chosen beneficiaries as per a clearly expressed trust deed. The advantage of this is continuity. Instead of fragmenting across generations, property remains intact under a single governing framework. The trust can define if an asset is retained for rental income, developed purposefully, monetised gradually, or preserved as legacy. Income distribution policies can be structured thoughtfully, with successor trustees pre-identified for unified governance Ring-fencing: Protecting core assets: An important dimension of succession planning is ring-fencing or protecting assets from business liabilities, litigation, debt, or cyclical downturns. Family can create a legal boundary between business risk and legacy wealth by transferring real estate to a structured trust. Passing on wealth, not costs: In India we do not have inheritance tax but it does not make inheritance tax-free. If inheritance tax is introduced, it would eat into the wealth of unprepared families. If someone sells inherited property, he has to pay for capital gains. He earns rent, the income tax to be paid on rental income. Add multiple heirs, the tax exposure gets fragmented and inefficient. This complexity is multiplied if you add stamp duty, registration, or cross-border heirs. Smart planning can optimise this. Families should time asset sales for long-term capital gains benefits, structure ownership for tax-efficient income flows, as well as build liquidity buffers to avoid distress sales just to meet tax or maintenance obligations. The government’s recent move to scrap mandatory probate of wills in certain jurisdictions may streamline succession procedures, but it can’t replace structured tax-aware planning From ownership to responsible management Indians love real estate, especially wealthy ones. An August 2025 story in The Economic Times, citing a report by Bernstein Private Wealth Management, stated that the top 1% of India’s wealthiest citizens have parked 60% of the wealth in real estate and gold Inheritance planning for real estate must extend beyond documentation to active management— like a financial portfolio. Trim underperforming assets, improve leasing, make timely redevelopment calls, allocate capital wisely, and ensure compliance. If real estate is left unattended, it may drag down returns even if it looks like wealth on paper. Mechanisms such as professionals for management, periodic reviews, and next generation education can turn inheritance into stewardship. Heirs are gradually inducted into decision-making processes, gaining financial literacy and responsibility. Integrating real estate into succession planning ultimately shifts the conversation from ownership to purpose. Clarifying intent through trusts, ring-fencing of assets and tax-efficient structures ensures that future generations inherit clarity, not confusion. In India, property carries both emotional and financial weight. Left to default inheritance, it fragments. Planned well, it anchors wealth across generations. As Indian wealth increases, the shift has to be from accumulation to intentional transfer. Real estate will sit at the centre of that journey. Madhu Sinha Dean ICoFP