Nerine Client Services Director Mark Biddlecombe said: "Our
business focus in India has always been assisting clients with
their planning for inward investment into the region, helping
Indian clients with international business interests as well as
developing succession planning arrangements for domestic Indian
assets. The natural progression for succession planning was
developing our domestic trust offering.
"Some may believe that, because India's legal system is
based on British law, this would be straightforward. This is not
the case as Indian family law is complex and each religion has its
own specific laws which must be adhered to. However, we now have
the infrastructure and skills in place to advise and provide
effective succession planning to Indian residents using domestic
"Factors in the past 10 years have meant that there has
been a renaissance in trusts as a mode of succession and estate
planning in India. One reason is the rapid and broad economic
growth which is setting the agenda for change in a number of areas.
The other, arguably more significant, reason is that large
businesses that have been overwhelmingly successful have remained
within the same family for more than two generations.
"Nerine's Indian domestic trust is tailored to meet
clients' expectations which have outgrown traditional solutions
and they now need a structure that ensures optimisation and
continuity of ownership and management skills matching the
business's present and future needs."
Mr Biddlecombe explained that there was still no domestic tax
benefits for family trusts but trusts were considered the perfect
vehicle for succession planning.
Another boost to private client structuring in India has been
the Indian government's relaxation on its rules on remittance
of funds abroad by resident Indians. Every individual is now
allowed to remit US$200,000 per year, including minors. This amount
is expected to rise to US$400,000 in the next year.
"As a consequence, high net worth individuals have started
to accrue assets outside India that are subject to foreign taxes
and laws," said Mr Biddlecombe.
"Nerine's global spread of expertise means that a range
of solutions can be provided from a number of jurisdictions; giving
our clients customised and specialised services for their
individual succession and estate planning requirements."
Referring to the decision to establish a Delhi office, Mr
Biddlecombe added: "It was a major step forward for us that
cemented our continued expansion plans in Asia. It was also a
significant move for Guernsey as a jurisdiction; flying the flag in
one of the world's fastest growing economies. "
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