Which one is better gift deed or will deed?
Introduction.
Assets can be transferred to a loved one without any consideration either through a gift deed or a will. Today we will know the pros and cons of both.
First let’s look at the explanation of the name of gift deed because it goes by many names such as gift deed, settlement bond, gift deed, gift deed and other names such as gift deed are also popular among people. Now let us know the differences between gift and testamentary deed.
Transfer of property by gift deed.
If you want to write a gift deed of a property you can write it to any person and the recipient can enjoy the property immediately but the gift deed can be written only to your spouse children or blood relatives.
As per the provisions of the Indian Contract Act, as long as you are competent to contract, a self-acquired property Can be gifted to anyone.
Any person of sound mind who is not a minor can sign any contract unless he is an undischarged insolvent. An immovable property can be gifted to the desired person by writing a gift deed. Stamp duty is payable for registration of the property as per the market value of the property as on the date of execution of the gift deed.
This gift bond can be gifted to any person during the lifetime. The recipient of the gift can also enjoy it completely freely, According to the provisions of the Transfer of Property Act, every transaction involving the transfer of immovable property above one hundred rupees has to be registered in the office of the Registrar of the area.
Transfer of property by will.
Any transfer of property can also be done by execution of a will, but ownership of the property takes effect only after the death of the person writing the will. According to existing laws, it is not necessary to register the will on stamp paper. Therefore, a will is an inexpensive and inexpensive method of transferring your property to the people you want.
Although it is not mandatory to register a will, it is always advisable to register a will as it is recommended by lawyers to reduce disputes and avoid unnecessary doubts among the heirs of the property. Also any property inherited under will or inheritance laws is exempt from income tax laws.
Property is inherited by a person after one’s death in two ways. As per the rules of succession applicable to the deceased unless the person holding the assets has written a will, the assets belonging to him on his death pass to his nearest blood relatives. If the deceased has written a will, the property will be inherited by the persons named in the will.
Under the Succession Act applicable to Hindus, there is no restriction on bequeathing one’s property to anyone other than one’s legal heirs. According to Muslim laws, a Muslim cannot bequeath more than one-third of his assets under a will.
Gift Or Will Which Option Should a Property Owner Choose?
The answer to this question is difficult, because each person’s situation is different. However, before deciding on a particular course of action, there are a few things to consider. If your only wish is to ensure that the assets you own during your lifetime reach your loved ones, then you can write a gift deed to the willed person so that the gifted person can freely enjoy the property during your lifetime.
If the beneficiary wants to enjoy the assets only after the death of the testator and wants to enjoy and control the assets during the lifetime of the testator, then it is better to write down the assets through a will deed. You can write a will to ensure the inheritance of your assets after your death.
However, if you want to help someone in immediate need, writing a gift deed can only benefit that person immediately. Transfer of property through gift deed should be done only in times of necessity. Transferring a substantial part or all of your assets to your legal heirs can put you in a difficult position in your old age.
Likewise, shifting your assets for tax planning is not advisable as losing control of your assets is unwise.
Now let’s see what is better. Gift deed is an expression of love when one is alive to give to his relations but cannot give the entire property which may be disadvantageous to the person who wrote it later.
For example: Suppose a father owns a house and gives it as a gift to his son or daughter. If he gives away all rights to that property to his son or daughter, then the son or daughter who gets the property can evict him from the house and sell the property to another person. I said it could end up being bad for the giver.
If a deed is written, after the death of the writer, it will be available to the person in whose name it was written. Thus the owner of the property can enjoy the property under his control till the time of his death.
Thus if we see whether it is better to write a gift deed or a will deed, they are better depending on the situation and we can write the deed which is helpful to the people.