I’m a single parent and my only son is now a foreign national. I want to safeguard his interests and am wondering should I make him a co-owner of my properties—to reduce his paperwork, regarding inheritance?
Rajat Dutta Founder & Initiator, Inheritance Needs Services: Properties comprise both movable assets, such as bank accounts, investments, jewellery and vehicles, and immovable assets, such as land, houses and apartments. Upon your demise, your ownership—whether partial or complete—in these assets will need to be legally transmitted to your legal heirs or beneficiaries through the applicable succession process.
Since your son is a foreign national, adding his name as a joint owner in your assets during your lifetime would generally be treated as an exempt gift under Indian tax laws. However, you should also evaluate the tax implications in your son’s country of residence or domicile, as the transfer may attract gift, inheritance or reporting obligations under local laws. In the case of immovable property, adding him as a co-owner would also require payment of the applicable stamp duty and registration charges, making it important to weigh the costs and benefits before proceeding.
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I am 70, I have a few standard shares which I need to transfer into pounds sterling to give to my daughter in London. Should I sell as soon as the Trump Iran standoff looks a little better?
Ravi Kumar TV Director, Gaining Ground Investment Services: You should not wait for the Trump–Iran situation to improve before selling the shares. At your current stage of life you already have a defined purpose for these shares—to convert them into pounds and give the money to your daughter in London. Since the money may be needed, the main goal should be to protect its value, not to take a chance on slightly better market conditions.
By waiting, you are taking two risks: the share prices may fall, and the rupee may weaken against the pound. A safer approach would be to sell the shares in stages. You could sell around 50% to 60% now, sell another part if the market improves, and complete the balance sale within the next few weeks. This reduces the pressure of choosing the perfect day. At your age, and for such an important family goal, certainty is more valuable than trying to earn a little extra return by timing the market more aggressively or precisely.
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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