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    Family Business - Workshop Slides

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    GVS Rao
    The document discusses how a family trust structure in India provides flexibility for families to document their understanding around managing family businesses and distributing wealth through a trust deed, while also reducing uncertainty and potential disputes. It notes that a trust can help strengthen family bonds and create an enduring legacy by keeping the vision of predecessors, and can enable an efficient family office structure. Key points for the trust include succession planning, decision making processes, beneficiary shares, philanthropic allocation, and policies around expenses and discipline for future generations.

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    Family Business - Workshop Slides

    Uploaded by

    GVS Rao
    17 views8 pages
    The document discusses how a family trust structure in India provides flexibility for families to document their understanding around managing family businesses and distributing wealth through a trust deed, while also reducing uncertainty and potential disputes. It notes that a trust can help strengthen family bonds and create an enduring legacy by keeping the vision of predecessors, and can enable an efficient family office structure. Key points for the trust include succession planning, decision making processes, beneficiary shares, philanthropic allocation, and policies around expenses and discipline for future generations.

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    Successful workshops conducted ( repeat programs= 36) ...since 2010

    Original Title

    Family Business_ Workshop Slides

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    The document discusses how a family trust structure in India provides flexibility for families to document their understanding around managing family businesses and distributing wealth through a trust deed, while also reducing uncertainty and potential disputes. It notes that a trust can help strengthen family bonds and create an enduring legacy by keeping the vision of predecessors, and can enable an efficient family office structure. Key points for the trust include succession planning, decision making processes, beneficiary shares, philanthropic allocation, and policies around expenses and discipline for future generations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    17 views8 pages

    Family Business - Workshop Slides

    Uploaded by

    GVS Rao
    The document discusses how a family trust structure in India provides flexibility for families to document their understanding around managing family businesses and distributing wealth through a trust deed, while also reducing uncertainty and potential disputes. It notes that a trust can help strengthen family bonds and create an enduring legacy by keeping the vision of predecessors, and can enable an efficient family office structure. Key points for the trust include succession planning, decision making processes, beneficiary shares, philanthropic allocation, and policies around expenses and discipline for future generations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    G2 Consulting

    Family Business
    GVS RAO

    India: C 905 Krishna Appra Saphire, Vaibhav Khand, Indirapuram. Ghaziabad. UP. India
    .No. 16, First Floor, 70 HK Bld, Y M Road, Masjid Bunder, West Mumbai, India
    UAE: Spark International FZE, PO Box 16111, RAK FTZ, RAK-UAE.
    Algeria: No: 2 Etage Batimet Billayat, Cite Eyalarsa, SETIF, ALGERIA.
    G2 Consulting

    In India, private family trusts are governed by the Indian Trusts Act 1882 and a
    trust is not treated as a separate legal entity. Rather it is an obligation to
    administer the property reposed by the settlor and accepted by the trustee for
    the benefit of identified persons. A trust structure provides a lot of flexibility
    and involves the drafting of a trust deed which documents the understanding
    and desire of the family in relation to the running of family business and
    management and distribution of family wealth in a codified manner.

    A trust structure provides an opportunity for the promoters to pre-empt


    possible scenarios and document the same in an orderly manner to avoid any
    potential family disputes and ensure conducive operation of the family
    business.

    It can help strengthen family bonds by reducing uncertainty on roles of family


    members and stipulating expressly what is expected of them. It can help in
    creating an enduring family legacy by keeping intact the vision of the
    predecessors for family business, though not at the cost of dynamism and
    adaptability to required changes. A trust structure can also lead to a structured
    format of a family office and enable efficiency in management and running of
    family office.
    Key points for decision making are:
    Succession of trustees G2 Consulting

    • Decision making matrix—to provide for matters which


    would be decided by majority/unanimous consent
    • Providing veto power to a trustee
    • Policy for distribution of corpus and income of the trust
    • Safeguarding interests of specific family members, for
    instance, spouse (after demise of head of the family),
    members with special needs, minors, etc.
    • Appointment of lifetime trustee/caretaker
    trustee/executor trustee
    • Determination of share of beneficiaries—whether to be
    decided upfront or to be discretionary as of now
    • Allocation of certain portion of wealth for philanthropic
    purposes
    • Specific policy for personal expenses of members like
    purchase of jewellery, international leisure trips, etc
    • Specific policy for behavioural and disciplinary aspects
    for the next generation.
    While the trust structure offers a lot of benefits, migration
    to the same requires a thorough analysis of costs (including
    stamp duty), tax implications, and regulatory laws
    surrounding it.

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