Alternative Assets | wealthymatters

What’s Up?

February 23, 2014 Leave a comment

“Every CEO’s trying to figure out What’s Up when FB pays $19 billion for WhatsApp. It redefines the meaning of, and method of, value creation.”- Anand Mahindra, chairman & MD of the $16.2-billion Mahindra Group

Filed under Alternative Assets, Entrepreneurship, Theory Tagged with Anand Mahindra quote, Facebook, method of value creation, postaday, value creation, WhatsApp, WhatsApp sale to Facebook

A Settlement Deed Instead Of A Will

February 22, 2014 Leave a comment

wealthymatters Suppose a person who owns a house, acquired out of his/her own earnings and wants to leave it to one or more of his/her children after the death of themselves and their spouse,to the exclusion of other children, he /she has the option of executing a will or making a settlement retaining life interest. The execution of a will has its own hassles in identifying a reliable person to be the executor and involves expenses too. The will might also have to be probated , the probate of a will is mandatory for the properties situated at Chennai, Mumbai and Kolkatta,for which court fee is to be paid.

The better option in this case would be to execute a settlement deed in favour of the children he/she wishes to leave the property to. The person can retain the life interest of residing and letting out the said property for rents and enjoying the rental benefits and other profits accruing there from during his/her life time along with the spouse. In the event of the spouse surviving after the person’s life time, the said property will devolve on the surviving spouse and he/she will be at liberty to retain the life interest of residing and enjoying the said property during their life time by letting it out for rents and receiving the rental and other benefits without having any right to alienate, encumber, and mortgage.

There are concessional rates of stamp duty and registration for settlement deeds for family members. The family members include father, mother, husband, wife, son, daughter and grand child.

Filed under Alternative Assets, Theory, Tool Kit Tagged with postaday, probate of a will, registration fee, settlement deed, stamp duty, transfer of property, Will

Release,Relinquishment,Settlement And Partition Deeds

February 5, 2014 Leave a comment

wealthymatters A release deed is a document through which one who has limited rights to a piece of real estate (usually a Mortgagee or Lienholder) abandons those rights back to the owner of the real estate.

A relinquishment deed is used for relinquishing a person’s rights to a property.It can be used to convert a joint holding property into a single holding.

A settlement deed is a document used when any disputes amongst any persons or group of persons is settled ,say via compromise.

A partition deed is executed by the co-owners of a property when there is a partition is by mutual consent.

Filed under Alternative Assets, Tool Kit Tagged with partition deed, postaday, property deeds, release deed, relinquishment deed, settlement deed

Gift Deed Or Relinquishment Deed?

February 5, 2014 2 Comments

wealthymatters When it comes to transferring property, a sales deed may not always fit the bill, especially if you want to pass it on to relatives. In such cases, instruments like a gift deed or relinquishment deed can come to your rescue. However, blindly choosing either can lead to problems.You must understand the purpose of each document before getting it drafted. Know the benefits as well as drawbacks of each.

Gift deed

This document allows you to gift your assets or transfer ownership without any exchange of money. To gift immovable property, you just have to draft the document on a stamp paper, have it attested by two witnesses and register it. Registering a gift deed with the sub-registrar of assurances is mandatory as per Section 17 of the Registration Act, 1908, failing which the transfer will be invalid. Besides, such a transfer is irrevocable. Once the property is gifted, it belongs to the beneficiary and you cannot reverse the transfer or even ask for monetary compensation.

However, if you want to gift movable property like jewellery, registration is not compulsory. At the same time, a mere entry in an account book is not sufficient to establish a transfer. Apart from physically handing over the property, you need to back it with a gift deed. The process is slightly different if you are gifting company shares. You have to fill out the share transfer form and submit it to the company or registrar, and the transfer agent of the firm. Once again, get a gift deed drawn and executed to complete the transfer, but the document need not be registered. Read more of this post

Filed under Alternative Assets, Paper Assets, Precious Metals, Theory, Tool Kit Tagged with capital gains, gift deed, gifting property, gifting property to relatives, gifting shares, immovable assets, inheriting property, movable assest, no will, postaday, Registration Act 1908, stamp duty, transferring property

Distributing Assets-Gift, Release And Transfer Deeds

January 30, 2014 Leave a comment

Often when a person dies-intestate,the legal heirs have to decide how to mutually distribute the assets of the deceased.Going to court is the least productive way.Negotiation is better and the courts are best approached only in case of a denial of one’s rights.

The following acts may be done to have a property which is jointly owned by the many heirs transferred in the name of one or few of them:

1) The heirs may execute a gift deed in favour of one or more of them, gifting away their share/interest in the said property inherited by them;

2) The heirs may execute a release deed in favour of one or more of them , releasing their share/interest in the said property, inherited by them .

3) One or more of the heirs may purchase the other’s shares/interest in the said property from the other/others by executing a deed of transfer and on the payment of consideration for the same.

No sale can take place and no deed of transfer can be executed without payment of consideration .Stamp duty is payable on gift deeds, release deeds and deeds of transfer. These documents have to be stamped in accordance with the provisions of the Indian Stamp Act applicable in the state where the property is situated.Further, as laid down in section 17 of the Registration Act, 1908, gift deeds, release deeds and deeds of transfer are all compulsorily registerable documents. Thus, on execution of any of these deeds, they have to be registered with the office of the sub-registrar of assurances within whose sub-district the whole or some portion of the property is situated, within a period of four months from the date of execution of the said document.