In today's rapidly changing global landscape, the management and structuring of wealth has become an intricate dance, especially for India's affluent families. The Hubbis India Wealth Management Forum 2026, held in Mumbai, shed light on this evolving dynamic, with a panel discussion chaired by Rohit Bhardwaj, offering valuable insights into the challenges and opportunities faced by Indian families and their advisors.
Navigating the Complexities of Cross-Border Wealth Management
Varun Kalsi, a prominent figure in the private client space, highlighted the impact of geopolitical shifts on capital flows. He noted a notable shift in sentiment, with families reassessing their wealth structuring strategies, leading to increased interest in jurisdictions like Singapore, the UK, Switzerland, and Hong Kong. This realignment is a direct response to changing global dynamics, prompting families to diversify their wealth across borders.
Two Distinct Client Profiles, Two Unique Challenges
Kalsi identified two distinct client profiles: those with wealth already externalized and those now exploring offshore options for the first time. The former group faces the challenge of structuring their existing wealth, while the latter must navigate the complex regulatory pathways for externalization. This distinction is crucial, as it shapes the advice and strategies required by each group.
The Role of Legal Systems and Structuring Vehicles
A key takeaway from Kalsi's insights was the importance of aligning structuring vehicles with the legal system in which they operate. Trusts, for instance, are more suitable in common law jurisdictions like India, the UK, and Singapore, while foundations may be more appropriate in civil law systems, such as the UAE. This distinction has significant tax and legal implications, especially for Indian families, as India's tax legislation recognizes trusts but not foundations as understood in civil law jurisdictions.
GIFT City: A Progressive but Complex Regulatory Environment
The panel also discussed the potential of GIFT City to become a global wealth management hub. While Kalsi acknowledged the progressive nature of the GIFT City regulator, he also highlighted the broader complexities of the Indian regulatory environment. The culture of ambiguity in Indian regulations, where answers often fall into a grey area, can be a source of frustration for clients seeking clarity. However, Kalsi also noted encouraging developments, such as the introduction of variable capital company frameworks and the approval of inbound family investment funds.
Succession Planning: A Continuous Process
A recurring theme throughout the discussion was the importance of treating succession planning as an ongoing journey rather than a one-off event. Kalsi emphasized the need for advisors to listen and understand their clients' objectives, regulatory considerations, and the locations of beneficiaries. By viewing trusts as family members, clients can better appreciate the governance obligations that come with structured wealth. The panel also stressed the importance of planning for relationship risk, as family conflict can be a significant threat to wealth transfer.
Conclusion: Embracing Flexibility and Discipline
India's wealth structuring ecosystem is in a state of flux, driven by regulatory reforms, jurisdictional competition, and the growing sophistication of its client base. To navigate this landscape successfully, families must invest in understanding their options, seek specialist advice across jurisdictions, and recognize the need for flexibility in their structuring strategies. While the regulatory environment is far from perfect, it is improving, and the key to success lies in treating wealth structuring as a disciplined process rather than a mere formality.
