2 trust trusts are legal arrangements that hold

2. Trust : Trusts are legal arrangements that hold assets on behalf of a beneficiary
or beneficiaries. There are different types of trust which can be created. The
person who creates the trust can decide the terms of the trust to be formed.
Trusts can also be created in the will, this is known as testamentary trust.
However, these trusts are subject to the rulings under the ‘Will’ which means
they also go through the process of probate.
3. Power of Attorney : It’s a legal arrangement where an individual designates
someone to manage one’s finances in case an individual becomes
incapacitated or is not in a position to do so. Many NRIs use Power of Attorney
(PoA) to designate someone in India to manage their assets — movable or
immovable.
4. Living Will : A living Will is an advance directive written primarily for physicians.
There may be life situations like one is terminally ill, seriously injured, in a
coma, in the late stages of dementia or near the end of life. This document
states the wishes of the people for these kind of situations when one is at the
end of life care and unable to communicate their decisions. .
5. Nomination and Beneficiary Designations : This is not really a component of an
estate plan but important for completing the estate plan. Appointing nominees are
important for smooth transfer of your financial assets after your demise. The rights
of nominee are limited to holding the assets as a custodian till it is transferred to
the right legal heirs. In some assets such as life insurance beneficial nominees can
be appointed who will be the legal recipient of the life insurance proceeds at death
of the policyholder. Under the new Insurance act, Parents, Spouse and Children,
if any one of them is the nominee in the policy, they automatically become the
Beneficial Nominee and hence they can consume the monies too.
The legal beneficiaries can change in situation like marriage; hence it is important to
periodically review nominations and beneficiary designations wherever applicable.

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14.4 Applicable Laws
14.4.1 Indian Succession Act, 1925
The Indian Succession Act deals with testamentary and intestate succession. When a will
is written, Testamentary succession is applicable. However, if there is no will then
Intestate succession applies. In that case, the properties are distributed as per the
religious laws.
The laws applicable to various religions are discussed below:
Succession for Hindus
For Hindus, the Indian Succession Act, 1925 is applicable for testamentary succession. But
for intestate succession, the Hindu Succession Act 1956, as amended in 2005, is
applicable. This difference arises due to the presence of the separate laws related to
Hindu Undivided Family (HUF).
Succession for Muslims
In case of Muslims, the Indian Succession Act, 1925 is not applicable in Testamentary or
Intestate Successions. The succession is as per religion.