Family Trusts & PMS/AIF Investments – Governance for Generational Wealth

As families cross multi-crore net-worth levels, structuring becomes as crucial as stock selection. Family Trusts allow smoother inter-generational transfer and clear decision rights when investing through PMS or AIFs.

Why Trusts Invest via PMS/AIF
• Segregates family assets from personal liabilities.
• Ensures continuity—trustees can act if key members are absent.
• Allows defined distribution ratios for heirs or causes.

Operational Setup
The trust becomes the “client” under SEBI regulations. All KYC, resolutions, and tax registrations flow through its PAN. Portfolio statements reflect the trust name, preserving legal ownership continuity.

Governance Edge
Trust structures bring institutional discipline—regular reviews, minutes, and external audit trails—mirroring global family-office standards.

Key Takeaway: Wealth succession without governance invites conflict; trusts institutionalise stewardship.
 

Disclaimer: Educational only.