Knowledge plus series i 231113


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"Knowledge Plus for Wealth + " will give you the overview of the recent happenings in the financial market.
Everyone wants to transfer the hard-earned wealth to the next generation smoothly and hassle free. This can be done through forming a private trust which is considered as one of the effective tool for succession planning and estate planning. This also helps to make asset protection.
In this issue, we will cover:
- Latest Happenings in the Financial Markets
- Introduction To Wealth Distribution
- Basics of Trust
- Types of Trust

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Knowledge plus series i 231113

  1. 1. VALUE PLUS - The Family Office KNOWLEDGE PLUS For Wealth Plus+ From Research Desk 23rd November 2013
  2. 2. Hot Topic Of The Week Trust – Effective Vehicle to Transfer the Wealth Knowledge Plus for Wealth +
  3. 3. Last week at the Financial Markets!!! News • Government approved proposals worth Rs 916 Cr. Impact 20 FDI • • • • Government to deregulate diesel • prices in next six months with gradual • increase in prices. • • Foreign inflow will increase. Higher inflow will reduce rupee volatility. Rupee will appreciate. Inflation will increase. Govt. subsidy burden will be reduced. Diesel demand may reduce. Negative for Auto Sector and positive for Oil Upstream companies. • SENSEX was down by 182.03 points (-0.89%) and closed to 20217 at end of the week. • (FIIs) remained net buyers in equity with net inflow of Rs. 3565.10 and net sellers in debt segment with net outflow of Rs. 819.40 crore. Knowledge Plus for Wealth +
  4. 4. Last week at the Financial Markets!!! Price Performance of Different Asset Class 2.00% 1.21% 0.65% 1.00% Choppy movements were seen in various asset classes. 1.07% 0.46% 0.00% -1.00% LME Copper $/MT WTI Crude Dow Jones $/bbl EURUSD USDINR -0.40% Sensex Gold (Spot) Silver $/t oz (Spot) -0.89% -2.00% -3.00% -3.32% -4.00% -4.00% -5.00% Knowledge Plus for Wealth +
  5. 5. Next Week in the Financial Markets..? • Expiry of Derivative Contracts on November 28. Knowledge Plus for Wealth +
  6. 6. Hot Topic Of The Week Trust – Effective Vehicle to Transfer the Wealth Knowledge Plus for Wealth +
  7. 7. Introduction • As everyone, you may also want to make sure that your hardearned wealth lasts throughout your lifetime and is transferred smoothly to the next generation. • The purpose of Wealth Distribution may vary from receiving lasting stream of income or gifting/transferring assets to loved ones, to leaving behind a philanthropic legacy and also in legacy planning. • It includes activities like forming a trust, creating a succession plan, drafting a will and philanthropy. Knowledge Plus for Wealth +
  8. 8. Trust • Through a private trust, assets or wealth is transferred by settlor and held by trustee for the benefit of a third party i.e. beneficiaries, under the Indian Trusts Act, 1982. • There are three parties involved in Trusts namely Settlor, Trustee and Beneficiary. • It is an effective vehicle for succession planning and estate planning. • It is a structure that provides effective and hassle free wealth management, asset protection and tax efficiency. Knowledge Plus for Wealth +
  9. 9. Types of Trust • Revocable Trust: – It does not protect assets as these can be withdrawn from the Trust. – In this case, assets are not considered given away to Trusts and thus taxed at the hands of the settlor. – The settlor can also be the beneficiary. • Irrevocable Non-Discretionary – Settlor has complete control of trust norms. So, he decides which beneficiary receives which assets and in what proportion. – If the settlor is the primary beneficiary, he is taxed at marginal slab rate. Knowledge Plus for Wealth +
  10. 10. Types of Trust • Irrevocable Discretionary – In this case, settlor only decides the beneficiaries and does not have complete control over Trust. – Trustees decides which beneficiary receives which assets and in what proportion. – Income tax is applied to Trust level. – The concept of Dividend Distribution Tax and Minimum alternate tax applicable to company is not applicable to a Trust. – Beneficiaries can save on income tax from the assets till the time they don't know how much they would receive. Knowledge Plus for Wealth +
  11. 11. THANK YOU Research Desk @ VALUE PLUS - The Family Office Office: Email: Website: (0265 -2324600,6629800) Knowledge Plus for Wealth +