Preface to the Eleventh Edition
1. Tax Planning Aspects of Private Trusts
n Introduction
n Specific or Discretionary Trusts
n
Trust for a 100% Specific Beneficiary or Two or
More Specific Beneficiaries
n Trust for Unborn Persons
n Endowment or Trust for a Private Deity
n
Provisions in the Income Tax Act for Clubbing of
Trust
Income
n
Different Income Tax Rates on the Income of
Different
Trusts
n Assessment Procedure for a Private Trust
n Scope of Tax Saving through Various Private Trusts
n No Wealth Tax on Private Trusts
n Conclusion
2. Important Aspects of a Valid Private Trust
n Preliminary
n Creation of a Valid Trust
n Types of Trusts
n Author or Settlor of a Trust
n Who Can be the Trustees?
n Oral versus Written Trust
n Is It Essential to Register a Trust Deed?
n Transfer of Income alone is not Sufficient
n Transfer of a Property to a Trust Must be Irrevocable
n Conclusion
3. Tax Planning through Private Trusts for Spouse,
Children and Other Relatives
n Introduction
n Private Trust for the Spouse of the Taxpayer
n Private Trust for Minor Son / Daughter
n Private Trust for a Major Son
n Private Trust for a Married Daughter
n Private Trust for the Daughter-in-Law
n Private Trust for the Taxpayers Parents
n Private Trust for Other Relatives
n Mode of Investments of a Private Trust
n Conclusion
4. Tax Planning through a 100 Percent Specific
Beneficiary Trust
n Introduction
n What is a 100% Specific Beneficiary Trust?
n
Who Can be the Settlor of a 100% Specific Beneficiary
Trust?
n Investment of Funds of a 100% Specific Beneficiary Trust
n
Disposition of Funds of the 100% Specific Beneficiary
Trust through
Will
n The Implications of 100% Specific Beneficiary Trust
n Special Beneficiary Trust for Senior Citizens
n Conclusion
5. Tax Planning through a Trust for an Unborn Person
n Introduction
n
Transfer to an Unborn Person is Only Possible
through a
Trust
n
When is a Trust for Unborn Person Liable to Income
Tax at Slab Rates of Tax and Not at the Maximum Rate?
n Trust for a Would-be Son or Would-be Daughter
n Trust for the Would-be Wife
n Trust for the Would-be Husband
n
When is a Discretionary Trust by Will for an Unborn
Person Not Liable to Tax at the Maximum Rate?
n Investment of Funds of Trust for an Unborn Person
n
Tax Aspects of a Trust for an Unborn Person carrying on
Business
n Conclusion
6. Tax Planning through a Discretionary Trust
n Introduction
n What is a Discretionary Trust?
n
Assessment of a Discretionary Trust through Will at Slab
Rates of Taxand Not at the Maximum Marginal Rate
n
Assessment of a Discretionary Business Trust through
Will at the Slab Rates and Not at the Maximum Rate
n
Assessment of any other Discretionary Trust at Slab
Rates of
Tax
n
Discretionary Family Trust (DFT) for Safety and
Security of Family Members
n Investment of Trust Funds
n Conclusion
7. Tax Planning by a Private Business Trust
n Introduction
n
When is it Advantageous for a Private Trust to carry
on
Business?
n Should a Private Trust Enter into Partnership with Others?
n
When is it Advantageous to have a Business Trust
vis-a-vis
a Private
Company?
n
How to Get Concessional Tax Treatment regarding a
Specific Business Trust?
n
How to Get a Concessional Tax Treatment regarding a
Discretionary Business Trust?
n Business Trust A New Tax Entity
n Conclusion
8. Tax Planning of an Oral Trust
n Introduction
n What is an Oral Trust?
n Normal Assessment of an Oral Trust
n
How can an Oral Trust be deemed to be a Written
Trust so as not to be Liable to Tax at the Maximum Rate?
n Conclusion
9. Tax Planning through a Personal Deity or God Trust or
Endowment or Private Religious Trust
n Introduction
n How to Transfer Property in favour of Deity?
n Appointment of Shebaits or Trustees
n Deity Trust or Endowment through a Will
n Property of the Deity and its Investment
n
Separate Assessment of Deity to Income Tax like
an
Individual
n Taxation of Business Income of a Deity Trust
n Wakf under Mohammedan Law
n Conclusion
10. Tax Planning regarding Registration, Exemption and
Assessment of Charitable and Religious Trusts
n Introduction
n Essential Conditions for Exemption of a Charitable Trust
n Conditions as to Registration of Trust, etc.
n Application of Income of a Charitable Trust
n
Application of the Amount could be for Revenue or
Capital
Purposes
n Relaxation regarding Application of Income
n Conditions for Accumulation
n Corpus Donation
n Exemption of Capital Gains
n Business Income of a Charitable Trust
n Specified Investments or Deposits
n Forfeiture of Exemption
n Denial of Exemption
n Filing of Income Tax Return
n
Application for Exemption or Deduction on Donation
under Section
80G
n Exemption of Educational Institutions
n Exemption of Hospitals
n
New Tax Amendments for Charity Trusts by Finance
(No. 2) Act,
2014
n Miscellaneous
11. The Living Trust: The Innovative Strategy for Passing
Your Estate to Your Heirs
n Introduction
n
Problems of Obtaining Probate Avoided through
the Living
Trust
n What is a Living Trust?
n The Pros and Cons of a Living Trust
n How to Create a Living Trust
n How to Settle Assets to a Living Trust
n Writing Succession Plans in the Living Trust
n
Gift Tax and the Clubbing Provisions in the case of
Living
Trusts
n Planning of Will in the Context of the Living Trust
n
Distinction Between Good Living Trust, Best Living
Trust and Hopeless Living Trust
n Practical Guidelines for Preparation of the Living Trust
n Conclusion
12. Valid Wills and Succession Planning
n Overview of Preparation of a Will
n Advantages of Making a Will
n Drafting a Valid Will
n Writing a Valid Will
n Registration of a Will
n The Role of the Executor
n The Role of Specific Legatees in a Will
n Legal Heirs versus Other Beneficiaries in the Will
n Tax Planning through Wills
n Succession Planning
n Sample Drafts of Wills
13. Important Judicial Decisions Relating to Tax Planning
through Private Trusts and Wills
n Introduction
n Important Judicial Decisions
14. Answers to Frequently Asked Questions on Tax and
Succession Planning through Trusts and Wills