Tag: Estate Planning

India’s Wealth Is Going Global

India is undergoing a transformation in its wealth landscape. As of 2023, there are over 13,000 Ultra-High-Net-Worth Individuals (UHNWIs) in the country, with this number expected to rise by more than 50% in the next four years (Knight Frank, 2024). As Indian families accumulate more wealth, they are also expanding their horizons. Their children are studying abroad, they are acquiring international real estate, and they are growing businesses with a global footprint.

But while wealth is expanding, so are the complexities. Many families have yet to adopt structured offshore planning. Without the right frameworks, wealth is exposed to excessive taxation, inheritance disputes, and limitations on cross-border movement. Global lives need global strategies – and that’s where bespoke, strategic wealth planning becomes essential.

Why Offshore Wealth Planning Matters

1. Protecting and Diversifying Assets

India’s regulatory landscape – especially with FEMA and RBI restrictions – can limit mobility of wealth. Economic uncertainty, changing tax policies, and rupee depreciation further motivate families to secure part of their wealth abroad.

Offshore structuring enables:

• Geographic diversification across stable jurisdictions
• Protection from domestic political and currency risk
• Access to global banking, investment, and insurance tools

For example, setting up a trust in Singapore or a holding company in the UAE can provide both asset protection and capital deployment flexibility, while complying with Indian law.

2. Planning for Global Education

A growing number of Indian students now pursue undergraduate or postgraduate education in the U.S., U.K., Canada, or Australia. In 2023 alone, over 770,000 Indian students went abroad (Indian MEA, 2024).

Yet families often finance this in ad hoc ways – using LRS (Liberalised Remittance Scheme), NRE accounts, or family loans – without optimizing taxes or control structures.

With proper wealth planning, families can:

• Pre-fund a U.S. trust or foreign bank account to cover multi-year education costs
• Set up structures that allow children to access support while ensuring parental oversight
• Avoid future gift/inheritance taxes in countries like the U.S. or U.K.

3. Real Estate Abroad: More Than Just a Home

Indian families are increasingly investing in global property for lifestyle, business relocation, or portfolio diversification. London, Dubai, New York, Lisbon, and Singapore are favored destinations.

But buying foreign real estate needs more than a transaction:

• Who will own the property – individual, trust, company?
• What’s the impact on inheritance tax (40% in the UK; 40% in the US over
• $13.61M)?
• What happens if the primary owner dies or is incapacitated?

A structured approach using SPVs (Special Purpose Vehicles), trusts, or joint ownership can protect assets from probate and litigation, optimize tax exposure and ensure a seamless transition to the next generation.

4. Legacy and Succession Planning

The U.S. estate tax applies to non-residents owning assets above $60,000 – without planning, families could lose millions. India, while not imposing an inheritance tax currently, could revisit the idea, especially as global norms evolve.

Bespoke helps structure:

• Irrevocable overseas trusts: to ring-fence assets and reduce tax exposure
• Dynasty trusts: to provide for multiple generations without the burden of probate or repeated taxes
• Cross-border wills: aligned with Indian and foreign legal systems

From Complexity to Clarity: Bespoke’s Process

We begin by understanding each family’s global footprint and ambition:

• Where are the children studying or settling?
• Are there operating businesses or passive assets abroad?
• Do they foresee citizenship/residency planning (EB-5, Portugal Golden Visa, UAE)?

Based on needs, we design:

• International Trusts (e.g., Singapore, Mauritius, Jersey)
• SPVs or holding companies (e.g., BVI, UAE, Delaware)
• Philanthropic vehicles (e.g., U.S. 501(c)(3)–equivalent donor-advised funds)
• Dual Wills and coordinated succession documents

We work with the client’s Indian legal and tax teams – or bring in our global partner network – to ensure seamless execution and compliance with:

• RBI reporting (LRS, Form A2, Form 15CA/CB)
• Global banking regulations (FATCA, CRS)
• Real estate purchase guidelines (under RBI’s FEMA circulars)

We conduct family workshops to ensure heirs:

• Understand the purpose of each structure
• Are prepared to take over governance
• Learn tax rules of their future countries of residence

Why Offshore, Why Now?

With global uncertainty, stricter tax enforcement, and growing family dispersion, the cost of not planning is rising.

Key trends:

• OECD’s push for transparent global reporting (CRS)
• India-U.S./U.K. tax treaties allow wealth structuring with proper planning
• Rise in wealth taxes globally (OECD 2023 report)
• Greater scrutiny of cross-border transfers post-2020

For Indian families seeking long-term security and global integration, the window to plan is now.

Why Bespoke?

At Bespoke, we offer more than expertise – we offer alignment. We understand the
mindset of Indian HNWIs: ambition grounded in family values, a global outlook rooted in legacy. Our firm is built to serve that vision.

With offices and partners across the globe, we provide true cross-border continuity. We are not product-pushers. We are advisors, architects, and stewards of generational capital. Whether you’re planning to send your child to Harvard, buy a home in Mayfair, or simply shield your hard-earned wealth from unnecessary risk, Bespoke builds the bridge between your Indian roots and global aspirations.

We do this quietly, with discretion, and with a relentless commitment to doing what is right for your family’s future.

Wealth today knows no borders. And neither should your strategy. Offshore wealth planning is no longer a luxury for Indian HNWIs – it is a necessity. Bespoke is your trusted advisor in navigating this complexity, safeguarding your legacy, and enabling your family to thrive – wherever in the world they call home. With Bespoke, your wealth doesn’t just move. It evolves.

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If you’re interested in learning more about Bespoke’s approach to private wealth management and how we can help you build a secure financial future, we invite you to reach out to us directly. We’d be happy to set up a confidential consultation at your convenience.

Thank you for considering Bespoke as your partner in wealth management. We look forward to the opportunity to work with you.

This information is intended for general educational purposes only and should not be construed as legal or investment advice.

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Sources:

Knight Frank. The Wealth Report 2024. Retrieved
from https://content.knightfrank.com/resources/knightfrank.com/wealthreport/the- wealth-report-2024.pdf

Ministry of External Affairs, Govt. of India. Lok Sabha Ǫ&A – Indian Students Data. Retrieved from https://www.mea.gov.in/lok-
sabha.htm?dtl/36975/QUESTION+NO2650+STUDENTS+DATA+IN+FOREIGN+UNIVERSI TIES

OECD. Global Revenue Statistics & “Taxing Wealth” Policy Brief (2023). Retrieved from https://www.oecd.org/tax/global-revenue-statistics-database.htm

Reserve Bank of India. Liberalised Remittance Scheme (LRS) Guidelines. Retrieved from https://rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12043

IRS. Foreign Account Tax Compliance Act (FATCA). Retrieved
from https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance- act-fatca

OECD. Common Reporting Standard (CRS). Retrieved
from https://www.oecd.org/en/publications/consolidated-text-of-the-common- reporting-standard-2025_055664b1-
en.html taxguru.in+1irs.gov+1oecd.org+10oecd.org+10oecd.org+10

IRS. Estate Tax for Nonresidents (Form 70c-NA guidance). Retrieved
from https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax-for- nonresidents-not-citizens-of-the-united-stateswww2.deloitte.com+8irs.gov+8irs.gov+8

Income Tax Department of India. Form 15CA/CB Filing Instructions. Retrieved from https://www.incometax.gov.in/iec/foportal/help/statutory-forms/popular- forms/form-15ca-faq

 

The same instincts that drive people to seek maximum control and maximum simplicity over their wealth can blind them to the hard truths of preserving wealth and enjoying it peacefully. Whether you’re aiming for asset protection, tax efficiency, or meaningful privacy, deliberately separating yourself from direct control over your assets is not a barrier to overcome. That “friction” is the path to true strategic advantage. Architecting your structures is the fullness of wealth sovereignty.

Low Friction Ownership: The Illusion of Control

Owning assets outright–either in your personal name or in a simple revocable living trust–feels frictionless. You feel like you have 100% control. Transfers are easy. Access is immediate. There’s no complex structuring or heavy compliance burden. But what you gain in short-term convenience, you often pay for dearly in long-term vulnerability–especially as wealth builds.

Low-friction ownership leaves your assets exposed. Beyond local “homestead exemptions” and narrow statutory protections, assets are completely vulnerable to potential creditors. (With roughly half of all marriages ending in divorce, a large percentage of creditors share the same roof–and bed–with the defendant!) The value of these assets remains inside the owner’s taxable estate for both federal and state purposes, and all income streams remain subject to personal income tax.

For most individuals, estate tax is immaterial–either because their wealth is well below applicable estate tax exemptions or because they think death is a long way off. But many individuals are well above the most generous federal exemptions, and many live in states with much lower state estate tax exemptions. And while life expectancy is higher for ultra-affluent individuals than for the general population, humanity has not yet overcome mortality. It’s a sobering truth that life can end anytime, anyplace. “Life’s final auditor” doesn’t discriminate based on the strength of one’s balance sheet.

In sum: low friction equals low protection, low privacy, and zero tax leverage.

Moderate Friction Ownership: The Middle Way

Moderate friction is where many intelligent wealth strategies operate. These often include limited liability companies, family limited partnerships, irrevocable trusts with retained rights, grantor trusts, and other structures where the owner gives up some direct control while still keeping significant access.

Protection improves along this middle way–at least somewhat. Properly designed (and carefully operated) LLCs can shield against outside creditors’ claims. Certain irrevocable trusts can offer partial privacy. In some cases, tax strategies like S-Corp LLCs can lower self-employment taxes or shave income tax burdens at the margins.

Moderate friction strategies fall short when meaningful asset protection or significant tax planning is needed. Retained powers and interests are usually available to creditors and generally keep the value of the assets in your gross estate when you die. Above the estate tax exemption, federal tax hits at 40%. Some states add state-level tax on top. Moderate friction strategies have an important role to play, but they leave meaningful wealth exposed.

High Friction Ownership: Where Real Strategy Begins

“High-friction” strategies are where meaningful wealth preservation and structured sovereignty starts. This is the realm of independently-managed LLCs, bifurcated ownership structures, and irrevocable trusts specifically engineered to break the owner’s “dominion and control” for tax, asset protection, and privacy purposes. These strategies exchange unilateral, low-friction control for much higher levels of:

• Asset Protection: Wealth is shielded behind strong legal barriers, often governed by laws of much more private and robust jurisdictions. Family wealth remains beyond the reach of future creditors because the wealth is legally out of your hands—managed by people you choose for your benefit or for the benefit of your loved ones.
• Tax Planning: Irrevocable non-grantor trusts can shift some income out of high-tax states, reduce or eliminate state-level estate taxes, and remove wealth from your taxable estate – for generations.
• Privacy: Layered ownership provides cascading privacy. Intelligent, carefully-managed structures minimize your public footprint while maintaining legal integrity.

The central idea is simple: in order to preserve meaningful wealth, you must be willing to give up some direct, unilateral control over it.

Dominion and Control: The Critical Break

In estate and income tax law, “dominion and control” is the defining measurement. If you maintain full control over your assets–or the structures that hold your assets–the law will treat the assets as still yours. That’s true no matter how many fancy documents you’ve signed. This means the assets are still taxable to you and subject to the claims of creditors.

High-friction strategies often sever or sufficiently dilute your dominion and control to achieve:

• Income tax planning: shifting income to lower-tax jurisdictions, or into other tax-optimized strategies.
• Estate tax planning: removing value (and future growth) from your taxable estate.
• Asset protection: building a moat between creditors and your wealth.

Without legally severing your “dominion and control,” none of these benefits materialize. 

Designing the Right Balance: Friction vs. Access

Structured planning requires a blended, thoughtful approach. Overplanning can suffocate flexibility, unnecessarily constrain cash flow, and create more administrative burden than is appropriate. Thoughtful wealth strategy seeks to balance friction across layers:

• Low/No Friction: Use this sparingly. Maintain free access for personal liquidity and consumption/enjoyment, operating businesses, and other assets where access and flexibility outweigh the need for protection. Only apply “no friction” solutions to wealth you’re willing to lose.
• Moderate Friction: This level is best for wealth that requires active management, investment flexibility, or eventual transition to higher-friction structures. For many individuals and families, most wealth should be in “moderate friction” strategies.
• High Friction: Reserved for wealth intended for legacy, multi-generational family wealth, protection from major risks, and shielding from taxation over generations. Highest friction equals the highest protection but the lowest level of direct access for you.

In every case, the level of friction should match your planning priorities. Assets intended for long-term family prosperity deserve the strongest defenses. Assets reserved for consumption, opportunistic investment, or unstructured philanthropy can remain more freely available.

Embracing Friction to Build Real Resilience

The dream of seamless, instant, unrestricted ownership is alluring. Many people think this is “sovereignty.” But when wealth is designed to span lifetimes, friction isn’t a bug; it’s a feature. Sovereignty is intelligently designing the structures to manage your wealth.

If you’re serious about preserving wealth, maintaining privacy, and mitigating tax exposure, the question isn’t how to eliminate friction. It’s how much friction you’re willing to architect into your plan today–to buy resilience, protection, and autonomy for the future.

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This information is intended for general educational purposes only and should not be construed as legal or investment advice.