How to avoid Property Disputes after your death

Introduction –

All along life humans always strive to earn, collect and maintain certain belongings which he can put to use for the benefit and enjoyment of himself his family and his friends.

These belongings can be of movable as well as immovable in nature some of which might get exhausted during the lifetime of its owner and some would continue in his/her legacy.

Such properties if partitioned or divided amongst the heirs during the lifetime of their owners would not cause much conflict in between the heirs, however if these properties are not divided or partitioned or gifted or the owner of such property has not made a Will for the same, then such properties would lead to major legal conflicts in the family.

Let us understand through this article, what are the measures through which a person can distribute his property amongst his family members

1. Will –

Definition of Will, According to the Indian Succession Act –
Will means the legal declaration of the intention of a testator with respect to his property which he desires to be carried into effect after his death.

A Will thus acts as the wish or desire of the owner of such property, which shall be acted upon the death of the testator. A will can be made by any person of sound mind.

Contents of the Will must include all the properties and possessions of the testator, and in what proportion or share is the property being divided amongst the heirs, it is to be noted that even a non family member can be given a share of the entire property through the Will.

If the testator gets married after making a Will, such Will shall be considered invalid and a new Will, has to be made.

Registration of Will is not Mandatory.

Refer – What is a Will, Importance of Making a Will

2. Gift –

Whereas a Will comes into effect after the Death of the Owner (Testator), a gift can be made during the life time of such Testator.

A Gift can be made of residential or agricultural property to the Husband, Wife, Son, Daughter, Grandson, Grand-Daughter, Wife of Deceased Son at minimal stamp duty and registration charges, however if a commercial property is being gifted then such transaction would invite stamp duty.

It is to be noted that in case of a Gift deed registration is mandatory.

3. Release Deed –

Release Deed is an useful instrument in the case of inherited ancestral property, in case of a release deed a person relinquishes his right in the said property for the other person.

Eg. – A large estate of land has been inherited by three brothers, out of which two brothers do not wish their rights in the property in the name of their third brother, thus they can execute a release deed in the name of their third brother.

However it is important to keep in mind that, release deed can be executed from one co-owner to another co-owner only.

In some states the Stamp Duty for release deed is minimal and thus in the case parents as well as children, it is to be noted that in case of a release deed registration is mandatory.

Conclusion –

Therefore with the help of these instruments one can make prior and proper decisions of his estate and divide his properties both movable and immovable accordingly.

This Article has been authored by Advocate Jenish Jain, Practicing in the Bombay High Court.
Write to him – [email protected]