Advertisements

Gift Deed Or Relinquishment Deed?


wealthymattersWhen 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

Advertisements

Distributing Assets-Gift, Release And Transfer Deeds


wealthymattersOften 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.
%d bloggers like this: