BackGifting property to a relative is cost-effective
The property can either be transferred to you upon your sister's demise in her Will or transferred to you during her lifetime under any of the other modes of transfer, which in the instant case could be by a gift deed
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I am 42 years old and physically challenged. My sister has got a property which is registered in her name. She wants to transfer the property to my name. What is the most cost-effective way of doing it? Can it be done free of cost?
—Shan Nair
The property which your sister owns can either be bequeathed/transferred to you upon her demise in her Will or transferred to you during her lifetime under any of the other modes of transfer, which in the instant case could be by a gift deed.
In the case of a Will, which is usually in writing, the testator (person making the Will) in his Will expresses his wishes for distribution of his estate upon his demise to the beneficiaries named in the Will; and upon the demise of the testator the legal ownership of the property would be transferred to such person or persons named in the Will. The Will has to be executed keeping in mind the requirements under law and signed by at least two witnesses in the presence of the testator. Your sister may make her Will and express her desire to transfer the property to you absolutely upon her demise. There is no requirement for registration of a Will under the Indian Registration Act, 1908. However, there may be a requirement for probate in certain cases under the Indian Succession Act.
As mentioned above, the other method of transferring the property would be by way of a gift, where your sister transfers her property to you under a gift deed, which must be accepted by you and recorded in a written instrument. A gift deed must be registered as per the legal requirements. However, the stamp duty and registration charges for gift of property among immediate family members would be very reasonable, depending on the state in which the property is situated.
The two aforementioned methods of transfer of property are the best methods. Both are equally cost-effective, but depending on the state in which the property is situated one may be more effective than the other. As we do not know the specific details of the case, it would be advisable to seek legal counsel.
To read more queries, go to www.livemint.com/askmintmoney
Aradhana Bhansali is partner, Rajani Associates
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