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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tools for Estate Planning

Mr. Raman Iyer, a 62-year-old client, wants his daughter to receive a flat only after he dies, but wants to retain full control, including the power to take the flat back, during his life. He wants to avoid probate-type delays if possible. Which tool best matches his need for retained control with the option to revoke?

A revocable trust with the client as trustee fits best. He keeps control and can revoke it during life, and the flat passes to the daughter under the trust terms on his death. A gift deed or irrevocable trust would give up control now.

  1. AIrrevocable discretionary trust
  2. BRegistered gift deed
  3. CRevocable living trust with himself as trusteeCorrect
  4. DRelease deed in favour of a co-owner

Explanation

A revocable trust lets the settlor keep control and revoke, while the property passes to the beneficiary under the trust deed on death. A gift deed transfers ownership immediately and cannot be taken back. An irrevocable trust removes control, and a release deed gives up rights in favour of a co-owner.

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