How to protect minor children and their inheritance

For a parent, there's probably nothing more important than securing their children's future. Bank savings, immovable property, jewellery, investments — people leave no stone unturned to ensure a comfortable, financially stable future for their children. But what about safeguarding the legacy that you want to leave behind for them — especially until they become adults legally?

Children of divorced couples & stepchildren

In the presence of a will, parents' self-acquired property will go to the person(s) named in it. However, if a parent dies intestate, children are the natural heirs. The Hindu Succession Act, 1956 acknowledges children as Class I heirs. This holds true in the case of divorced parents as well. Children of divorced couples also enjoy rights over their parents' ancestral property.

As per the Hindu Succession Act, 1956, stepchildren do not fall under the category of 'son' or 'daughter'. Hence, they have no legal rights over their step-parents' property if the latter dies intestate. So, if a step-parent wants to leave his property for his stepchild(ren), the only way to do so is through a will.

Adopted children

Parents can leave their self-acquired property to anyone they choose in their will. If they die intestate, adopted children enjoy the same rights as biological offspring. Adopted children cannot stake claim over their biological parents' property unless the latter have written so in their will.

Illegitimate children

According to Section 16 (3) of the Hindu Marriage Act, 1955, illegitimate children can only stake claim over their parents' self-acquired property and have no share in ancestral inheritance (unless a will has been written, bequeathing them something).

Live-in couple's children

A 2015 Supreme Court ruling stated that couples who have been in a live-in relationship for a long time can be considered married. So, their children will enjoy the same rights as a legal heir and can claim the inheritance of their parents' self-acquired property under Section 16 of the Hindu Marriage Act, 1955.

Minor children

A will attains extreme importance in the case of minor children. While minor kids are the legal heirs, they have no legal authority over it till they become 18 years old. That is, they own the property but cannot exercise any control over it. The property will be 'managed' by a legal guardian appointed by the court, in case the parents have not written a will.

Another option is to set up a beneficiary trust for minor children so their inheritance can be protected until they become adults.