Couples think beyond tax savings of joint assets

Synopsis Couples should focus on establishing shared ownership of assets and developing a continuity plan to access these in case of emergencies. It's crucial to clearly identify the funding sources for joint properties to avert any tax conflicts. Supreme Court rulings clarify that a nominee serves as a custodian rather than an owner. Drafting a Will detailing asset ownership helps avert disputes among nominees and legal heirs. Listen to this article in summarized format Listen ET Online Saving income tax is important for couples but they must also ensure that their assets remain accessible. assets should be available to both partners in various situations. At the ET Wealth Expo 2026 , a panel of experts including Aditi Sharma, Partner, Khaitan & Co, CA Nitin Kaushik, Founder-Partner, AMKN & Co Chartered Accountants, Suresh Sadagopan, founder, Ladder7 Financial Advisories and Hiten Shah, Tax Partner, EY India, discussed this topics. They also covered other aspects like how married couples can manage their finances and get ready for multiple eventualities like death, divorce, disability, etc. Why married couples should look beyond tax savings aspects of jointly owned assets Aditi Sharma, Partner, Khaitan & Co said at the ET Wealth Expo 2026 that couples should go beyond the micro aspects of saving income tax and instead look into the macro aspects of protecting the assets and its access. Sharma says that married couples should create jointly owned assets and a continuity plan along with it so that when one of the partners dies, the other partner continues to get access to the joint assets. Sharma says that if the assets are held by only one individual spouse then it can create delays in accessing this asset in case of incapacity or sudden demise . This is why updating the nominees in financial accounts is very important. Hiten Shah, Tax Partner, EY said that if a married couple wants to jointly buy an asset say property then it is important that the source of funding for this house property is clearly demarcated else it may create tax disputes later on. This can also help the couple put it on record about the contribution and ownership percentage, which can also help if any personal dispute erupts later on. Nominee is a custodian of assets not owner of assets Sharma says that a nominee is like a custodian or gate keeper of an asset whose purpose is to help the legal heir who is the ultimate owner of the asset get access to this asset in the event of the original owner’s demise. The Supreme Court has clarified in multiple judgements that the legal heirs are the owner of the assets and the nominee is a custodian. For example: If in your Will you give your bank account to Mr A but made Mr B the nominee then for operational purposes B gets the bank account but its rightful owner is A as per the Will. Sharma says that while nomination is important, a Will clearly specifying the ownership of the assets is needed. So when the Will is being drafted, make sure to write it in such a way that it is not creating any discrepancy between the nominee and the legal heir. However, for few specified assets like life insurance, PF, EPF, etc, the law says that if a close relative is made nominee for such assets then he/she becomes the legal heir for the specific purpose of this asset. For other assets, the nominee remains the custodian and the legal heir as per the individual’s personal law (Hindu, etc) becomes the owner. (Join our ETWealth WhatsApp channel for all the latest updates) Add as a Reliable and Trusted News Source Add Now! Read more news on jointly owned assets nominee vs legal heir tax savings for couples financial planning for married couples asset management for couples ET Wealth Expo 2026 importance of a Will (Catch all the Personal Finance News , Breaking News , Budget 2025 Events and Latest News Updates on The Economic Times .) Subscribe to ET Prime and read the ET ePaper online. ...more Add Comment