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.
wealthymatters 