No kids, multiple properties: Who inherits the real estate wealth of DINK couples?

For DINK couples, inheritance planning is critical as there are no default heirs. Without a Will, real estate is distributed under succession laws, say experts

A Reddit post titled “Being DINKs in India is oddly… peaceful?” recently sparked an online debate around money, mental health and family expectations after an Indian couple shared their experience of choosing a child-free, dual-income life.

The couple went on to list the upsides of their decision. “Some honest upsides I didn’t fully appreciate earlier: Financial breathing room without guilt, Freedom to take risks with career, health, relocation, Time and energy for ourselves and our relationship, Decisions driven by choice, not deadlines. Less constant anxiety about ‘doing everything right, ’” they wrote.

For DINK (Double Income, No Kids) couples, the question of who inherits their real estate wealth becomes especially important because there are no direct heirs by default. If a couple does not leave behind a valid Will, their property is distributed according to personal laws or the Indian Succession Act, which may result in assets passing to extended family members in a manner that may not reflect their intentions.

Also, simply naming a nominee is not enough, as a nominee does not become the legal owner unless specifically named as a beneficiary in a Will. To retain control over how multiple properties are transferred, DINK couples should put in place a clear succession plan through a properly drafted Will and, where appropriate, use structures such as private or charitable trusts to manage, distribute, or even preserve real estate assets for chosen individuals or social causes, say legal experts.

Draft a Will

A well-drafted Will is the first step, while options such as trusts, including charitable trusts, can help channel wealth towards chosen social or philanthropic causes, they say.

DINK couples represent a distinct category and from a succession planning standpoint, if a person does not leave behind a proper estate plan, the assets and properties of such person are distributed according to rules of intestate succession under the applicable personal law, such as the Hindu Succession Act, 1956, Muslim personal law, Christian law, or the Indian Succession Act, 1925, explains Sunil Tyagi, Managing Partner, ZEUS Law Associates.

“These laws follow a predetermined hierarchy of heirship. Upon the demise of a spouse without a WILL, the assets and properties left behind by such deceased spouse devolve upon surviving spouse, parent(s), siblings or other relatives, in accordance with the rules of intestate succession under the applicable personal law, regardless of the deceased person’s personal wishes or the nature of his/ her relationship with such heirs,” he says.

DINKs should have a proper succession plan in place

He cautions that the rules of inheritance may not align with a person’s intentions; therefore, it is important to have a proper succession plan in place to ensure that wealth accumulated over a lifetime devolves in accordance with personal preferences rather than by operation of law.

“The execution of a duly drafted Will forms the initial step, enabling the DINK couples to identify and clearly choose specific beneficiaries to whom the assets and properties shall devolve and to set out the precise manner of asset distribution,” he says.

Nomination versus inheritance

In this regard, one should also be mindful that that even if there is a nominee in relation to liquid assets, there is a legal distinction between nomination and inheritance, as a nominee merely holds the asset in a fiduciary capacity to distribute as per Will or succession laws and does not acquire beneficial ownership unless expressly designated as a legatee under a valid Will, he says.

Should DINK couples consider setting up a trust?

One way to distribute assets is through trust structures, particularly charitable trusts, which allow wealth to be systematically channelled towards defined social causes, legal experts point out.

“Succession planning for DINK couples requires a well-thought-out legal structure that moves away from applicable personal law rules. Such couples should rely on Wills to clearly name beneficiaries, use trust structures to create a lasting legacy, and ensure that nominations are consistent with the Will they leave behind. A comprehensive and cohesive approach to estate planning is essential to ensure that assets are passed in harmony with the intention of the couple while remaining legally valid in nature and avoiding any discrepancy or disputes over inheritance,” adds Tyagi.

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