Dear Sirs,
My client executed a will and later expired. His will includes a business. Now what would be the status of the business? A HUF (in which case the eldest son would be the Karta as per Hindu Law)? or a partnership?
Thanking you in advance and looking forward for reply
Yours sincerely
T Narasimha Murthy
Details of the will :
Client executed his Will on 12th November 2009.
Client expired on 10th February 2013 and is survived by 3 sons and 1 daughter.
Client's will talks about four properties.
Of the above four assets, Asset 1 is given to the eldest son; Assets 2 and 4 are given to the youngest son; and
Asset 3 (a business) is to be managed by the youngest son and his wife and the profits are distributed among four children; the wife of the youngest son and a trust created by the Client in the following ratio :
1st Son : 15%
2nd Son : 15%
3rd Son : 30%
Daughter : 15%
Wife of 3rd son : 20%
Trust : 5%
Total : 100%
Can I propose to change the above business into partnership with the above profit sharing ratios with 6 partners including the Trust?
Verbatim reproduction of that part of the client's will which talks about the above property :
The property mentioned at point 3, being a business, shall be run by my third son, Mr. XX and his wife Mrs. YY efficiently; expenditure and the salaries of the two may be deducted from the annual income of the business; and the rest may be distributed in the following ratio :
1st Son : 15%
2nd Son : 15%
3rd Son : 30%
Daughter : 15%
Wife of 3rd son : 20%
Trust : 5%
Total : 100%
