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These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.
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I want to give my share in a plot of land, in Karnataka, to my sisters. I want to know if I need to draft a relinquishment deed or a gift deed for this purpose. Which of these options will be simpler and cheaper?
Raj Lakhotia Managing Partner, LABH & Associate: A relinquishment deed can be executed if the property is not registered and/or recorded in your name, allowing you to forgo your rights in favour of your sisters. However, if the property is already registered and/or recorded in your name, a gift deed will be the appropriate option. As per the Karnataka government’s official website (https://igr.karnataka. gov.in), the costs associated with both the instruments, including stamp duty and registration charges, are generally similar while transferring the property to immediate family members. You may choose either option based on your preference and the property’s specific circumstances. However, it is advisable to consult a local advocate or the registrar to confirm the stamp duty and registration fees before proceeding.
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My will has properties and bank accounts listed, and everything is in favour of my son. It is registered. Recently, I transferred one of the properties to my son’s name and closed one of my savings bank accounts. Is the existing will still valid?
Rajat Dutta Founder & Initiator, Inheritance Needs Services: A will allows the asset owner to document his/her wish, specifying how the wealth or assets owned by the testator (the person making the will) should be distributed among the named beneficiaries after his/her death. The list of assets mentioned at the time of signing may change over time, as the owner could gift, sell, or monetise them during lifetime. Therefore, upon the owner’s demise, only the assets existing on that date will be distributed in accordance with the directions in the will. In your case, the existing will would continue to be valid and there is no need for revising it, as long as it has the residual clause, which would take care of distribution of assets on date of demise, i.e. assets/wealth acquired from date of signing the will to assets as on date of demise.
Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away. Email ID: etwealth@timesgroup.com
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