Ratan Tata's Rs 10,000 Crore Estate: Who Inherits His Wealth? - All You Have To Know
The patriarch of the Tata group, industrialist and philanthropist who fell silent on October 9 at the age of 86, has left behind a legacy that cannot be measured in rupees and paisa. Yes, even his Rs 10,000 crore estate cannot be put in words. News about the inheritance and his demise was already gaining pace after his death. According to reports from The Times of India, Tata's estate goes to several beneficiaries, that is, his foundation and other family members including a brother Jimmy Tata, as well as half-sisters Shireen and Deanna Jejeebhoy, who would also receive a fraction. The Will has evidently taken into account all loved ones, even his trusted butler, Subbiah, whom he is reported to have befriended after three decades. His executive assistant, Shantanu Naidu, is also included in the will. Tata would surrender a substantial stake in Naidu's venture, Goodfellows, his company with friends, and fund their overseas education.
Who Will Inherit Ratan Tata's Estate?
Ratan Tata's will has been made to include shares for his brother, Jimmy Tata, and half-sisters Shireen and Deanna Jejeebhoy. He has also made provisions for his butler Subbiah, with whom he had a very close relationship for over three decades. Subbiah was also said to have been on the receiving end of ready-to-wear designer outfits as he traveled with Tata. Another of the persons mentioned in the will was Tata's executive assistant, Shantanu Naidu. According to the will, Tata was said to have forfeited his holding in Naidu's companionship venture, Goodfellows, and that he would take all loans Naidu had taken to finance his education.
Care of Tito, His Pet Dog
Tata has already made arrangements for the "unlimited care" of his German Shepherd, Tito, in the hands of his longtime cook, Rajan Shaw. This goes to indicate Tata's love for pets, which he is well-known for. While leaving fortunes for pets is quite the norm in the Western countries, it remains relatively unknown in India. A passionate animal lover, Tata would not even stay back in demanding what is required for the betterment of street dogs. He will take time in finding homes for deserted pets and also made their requirement popular on social media.
Tata Trusts Supports Charity
The will has bequeathed all the shares held by Tata in group companies, Tata Sons and Tata Motors to the charity organization, Ratan Tata Endowment Foundation. N Chandrasekaran, the chairperson of Tata Sons is likely to lead the RTEF. The firm, RNT Associates and RNT Advisers, in which his investments in startups exist, will liquidate their funds. The same will be routed towards RTEF. Founded in 2022, this foundation is dedicated to supporting non-profit initiatives and has made the following significant investments, among others: it owns shares of Tata Technologies before its IPO in 2023 and a piece of Tata Digital, the company that runs Tata Neu.
What Happens to Ratan Tata's Property and Assets?
Significant properties among Tata's assets include a 2,000 square feet beach bungalow in Alibaug, a two-storey house on Mumbai's Juhu Tara Road, and fixed deposits over Rs. 350 crore. His 0.83% stake in Tata Sons will be transferred to the Ratan Tata Endowment Foundation (RTEF), thus following the Tata tradition of donating shares to charitable trusts. He will also pass his stakes in other Tata Group companies like Tata Motors to RTEF. The iconic Halekai house in Colaba, where Tata lived till his death, will be decided by Ewart Investments, a subsidiary of Tata Sons. More than 20-30 luxury cars, parked at Halekai and Taj Wellington Mews, could find a place in the Tata museum at Pune or could be put up for auction. The Juhu property that Tata has inherited from his father, Naval Tata, remains closed for more than two decades. Even the sale of the property is being discussed. Probate in respect of Tata's will is at Bombay High Court. It may take a few months.
This also implies that Ratan Tata has gone to the grave without appointing a successor, and the onus is now on the board of trustees at the Tata Trusts to identify someone to lead Tata Trusts - an influential body which regulates almost every interest in Tata Group. N Chandrasekaran, who has headed Tata Sons since 2017, will continue to lead this group but the Trusts appointee will be crucial in ensuring continuity. This strategy would then ensure stability because, under strategic succession, the Tata family has relied on wills for a long period, using trusts instead of traditional wills. It therefore allows for controlled asset management as is done when allocating Tata's 0.83% stake in Tata Sons and other assets to the Ratan Tata Endowment Foundation (RTEF) and most of his estate towards some philanthropic goals. While information about the target distribution is not available, close family members - such as Jimmy Tata, Shireen, and Deanna Jejeebhoy, as well as loyal employees including his butler Subbiah and assistant Shantanu Naidu - have been identified as beneficiaries.
