I own a property in Mumbai and would like to provide that:
1. After my demise and upon the property being sold, the proceeds from the sale should be given to my heirs in a specified manner.
2. Each person’s entitlement of the sale proceeds should be given to them in specific percentages after the elapse of a specified number of years. For instance, that 20% be given to them immediately upon receipt of the sale consideration and 10% on the expiry of every subsequent year and so on.
3. One or more family members, who are not a beneficiary, should oversee the sale of the property and the disbursement of funds.
Option 1- Trust: I form a Trust to which the property is transferred and the Trust Deed provides for all the above requirements. However, the formation of such a Trust would involve stamp duty of 5% of the market value of the property, which I would not like to pay.
Option 2- Will: I execute a Will, in which the executors are charged with the responsibility of overseeing the sale of the property and thereafter fulfilling my requirements relating to the disbursement of the proceeds to my heirs.
Who will be the Owner of the property in the interim between my demise and the sale of the property?
Will there be any incidence of stamp duty relating to the market value of the property?
Option 3- Will & Trust: I form a Trust, with a nominal sum of money, and the Trust Deed provides the conditions relating to the disbursement of the Trust Funds.
I also execute a Will, in which the executors are charged with the responsibility of overseeing the sale of the property and thereafter transferring the proceeds to the Trust and becoming part of the Trust Funds. The Trust Funds will be dealt with as per the provisions of the Trust Deed.
Query: Are these options workable? Is there a better option?
I will be happy to pay the fees required for the advice that is provided.
