Gifting property to a relative is cost-effective

There is no requirement for registration of a Will under the Indian Registration Act, 1908. Photo: iStock

I’m 42 years outdated and bodily challenged. My sister has bought a property which is registered in her title. She desires to switch the property to my title. What’s the most cost-effective approach of doing it? Can it’s executed freed from value?

—Shan Nair

The property which your sister owns can both be bequeathed/transferred to you upon her demise in her Will or transferred to you throughout her lifetime underneath any of the opposite modes of switch, which within the immediate case might be by a present deed.

Within the case of a Will, which is normally in writing, the testator (individual making the Will) in his Will expresses his needs for distribution of his property upon his demise to the beneficiaries named within the Will; and upon the demise of the testator the authorized possession of the property could be transferred to such individual or individuals named within the Will. The Will needs to be executed holding in thoughts the necessities underneath regulation and signed by not less than two witnesses within the presence of the testator. Your sister might make her Will and categorical her want to switch the property to you completely upon her demise. There isn’t any requirement for registration of a Will underneath the Indian Registration Act, 1908. Nevertheless, there could also be a requirement for probate in sure instances underneath the Indian Succession Act.

As talked about above, the opposite methodology of transferring the property could be by the use of a present, the place your sister transfers her property to you underneath a present deed, which have to be accepted by you and recorded in a written instrument. A present deed have to be registered as per the authorized necessities. Nevertheless, the stamp obligation and registration fees for reward of property amongst instant members of the family could be very cheap, relying on the state wherein the property is located. 

The 2 aforementioned strategies of switch of property are the very best strategies. Each are equally cost-effective, however relying on the state wherein the property is located one could also be more practical than the opposite. As we have no idea the particular particulars of the case, it will be advisable to hunt authorized counsel. 

To learn extra queries, go to www.livemint.com/askmintmoney

Aradhana Bhansali is companion, Rajani Associates 

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