Ratan Tata may no longer be with us, but his legacy, contributions, and the institutions he built continue to have a lasting impact. Following his passing, questions have arisen about the distribution of his massive fortune, estimated at ₹15,000 crores. Tata’s will mentions several individuals, yet confusion lingers regarding who will ultimately inherit this substantial wealth. In this article, we’ll explore the details of Ratan Tata’s will and what it means for his legacy.
Individuals Named in the Will
Ratan Tata’s will specifically includes the Ratan Tata Endowment Foundation (RTEF), his brother Jimmy Tata, his step-sisters Shirin and Diana Jijibhoy, along with his household staff. The will reflects a careful arrangement for his close associates, ensuring they are taken care of according to his wishes.
Beneficiaries of the Wealth
The Ratan Tata Endowment Foundation, which will operate using Tata’s private funds, is set to focus on philanthropic activities. However, a point of contention remains regarding who will select the trustees of RTEF, as Ratan Tata did not provide clear instructions on this matter in his will. To resolve the ambiguity, individuals connected to the Tata Group may seek the assistance of an impartial party. As per a report from Economic Times, there are suggestions that a retired Chief Justice of the Supreme Court might be appointed as an arbitrator. This decision would clarify whether the authority to appoint trustees lies with the executor of Tata’s will, the Tata family, or members of the Tata Trust.
Ratan Tata’s Net Worth
In 2022, Ratan Tata established the RTEF and the Ratan Tata Endowment Trust to channel funds for social work. His stake in Tata Sons, the holding company of the Tata Group, was approximately 0.83%. According to Hurun’s Rich List, his individual net worth was around ₹7,900 crores. However, due to his shareholdings in various companies, his total net worth is estimated to be over ₹15,000 crores.
What Will Happen to the Billions?
Ratan Tata was known for investing his earnings in philanthropic endeavors. Therefore, it is expected that much of his wealth will be managed by the RTEF, while other trusts will oversee additional charitable activities. Additionally, funds generated from the auctioning of his luxury cars and other vehicles will likely be funneled into the RTEF, aligning with Tata’s vision of utilizing his wealth for societal betterment.
Who Will Be the Trustee?
Ratan Tata appointed R.R. Shastri and Burjis Taraporvala as holding trustees for the RTEF. However, it remains unclear who will be selected as a trustee moving forward. His will explicitly named Darius Khambata, Meher Mistry, Shirin, and Diana Jijibhoy as executors. Reports indicate that Khambata, a senior lawyer, is also the executor of Ratan Tata’s will.
Possible Recommendations
Experts suggest that according to reports from Economic Times, if there are no specific instructions for managing the estate in a will, it generally falls upon the executors to ensure that the deceased individual’s wishes are honored and implemented correctly.