As part of a family settlement after the couple’s divorce, Nawaz Modi Singhania, 53, the estranged wife of billionaire industrialist Gautam Singhania, has reportedly demanded 75% of his alleged $1.4 billion net worth for herself and her two daughters — Niharika and Nisa, Economic Times reported.
Singhania has recommended creating a family trust and transferring the family’s assets to it, with him serving as the only managing trustee, even though it is thought that he has generally consented to the demand.
ET reported that his family members would be permitted to inherit the assets following his passing. Nawaz is thought to find this intolerable.
People familiar with trust laws said that a trust consists of three primary stakeholders: the settler, who contributes funds to the trust, the trustee, who serves as an administrator, and the beneficiary.
A Mumbai-based tax specialist, on the condition of anonymity, said, “A trust is primarily about a relationship rather than the law. A trustee may also be a settler. Not all three, though. That would negate the intention and come under contract law provisions.”