A Settlement Deed Instead Of A Will

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.