Estate Planning: Can a registered, conditional gift deed be treated as a will? – The Economic Times

Clipped from:

A conditional gift deed and a will are completely different documents having distinct features and purposes.

Raj Lakhotia, Founder, Dilsewill,, answers estate planning queries in this week’s edition from our readers.

Is a registered, conditional gift deed legally valid or not? If it is not valid, can it be treated as a will? If treated as a will, under which section of which Act? — Sumedh Singh

Yes, a registered, conditional gift deed is valid in India. A conditional gift deed and a will are completely different documents having distinct features and purposes. In my opinion, a conditional gift deed cannot be treated as a will.

My parents have been joint owners of a self-acquired property since 2010. I am the eldest son and have one younger brother. Both of us are married. My mother expired recently and we obtained the death certificate from the municipal corporation. I want to know if is is legally necessary to intimate any other authority like the registrar, court or municipal corporation about the death of a joint owner of property? Is any process or affidavit required? Is there a mandatory or legal requirement about writing a will by my father, or we don’t need to do anything as we are class I legal heirs? — S.D. Singh

As your mother passed away without writing a will, you need to obtain a succession certificate from the district court falling under the jurisdiction of the self-acquired property, and/or immediately give the notification to the panchayat, or municipality, or corporation, or any other appropriate authority under which such property falls, and follow the required process of mutation. Writing a will is not mandatory, but it is recommended to ensure a hassle-free transfer of property to legal heirs and beneficiaries.

I, along with my sibling, inherited some property from my father. I plan to relinquish my right to my sibling for a consideration. Will it be treated as inheritance and exempt from tax? Or will it be treated as a sale and TDS will have to be deducted before disbursement? — Vineet Kochar

Considering that the property in question was acquired by you at least two years ago from your father, the relinquishment of right against consideration shall be subject to long-term capital gain where the consideration would be the amount received by you. So you will be able to claim the proportionate cost apportioned to your share in property against the consideration received. It is advisable to deduct the tax deducted at source (TDS) to avoid any litigation in the future.

(Disclaimer: The responses are based on limited facts provided by the queries. It is advisable to consult a legal practitioner after presenting full facts and documents. Responses should not be considered as legal advice in any manner whatsoever.)

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