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

Intestate Succession As Per The Hindu Succession Act,1956

The Hindu Succession Act,1956 applies if the intestate is Hindu,Buddhist,Jain or Sikh but doesn’t automatically include scheduled tribes.It also includes legitimate orĀ illegitimateĀ children,if one of his/her parents is Hindu,Buddhist,Jain or Sikh.It also includes converts and reconverts to these religions.

When a Hindu male dies intestate i.e.without a will, and has not married a non-Hindu,the right of succession first devolves upon the Class 1 heirs, if any,shown in the diagram to the left. If even one such heir exists, all other relatives who do not fall within this category are excluded automatically.If there are several Class 1 heirs, then there are certain rules as to how they will share the properties amongst themselves. Read more of this post

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