Transfer your Property via Gift Deed or Will

Transfer your Property There are two ways through which you can transfer your share in the property in your wife’s name:

If you make gift deed

If you make a gift deed then absolute and clear title would pass to your wife and she would become an undisputed owner of the property during your lifetime. Once a gift deed is executed then you will not have any share/interest/ownership in the property. You must understand the basic points involved in trasfer of property through a gift deed.

According to law a gift is a voluntary transfer of property from one person (the donor or grantor) to another (the donee or grantee) without full valuable consideration. However, a gift deed is legally valid when it is actually delivered to and is accepted by the donee.

In India, previously there was Gift Tax Act under which the donor had to pay gift tax on the amount of gift. However, the said Act has been abolished and, a new provision was inserted in the Income Tax Act (1961) under Section 56 (2) which provides that if the gift is received by an individual or Hindu undivided family (HUF) from any relatives or blood relatives or at the time of marriage or as inheritance or in contemplation of death, then it will not be taxable.

If you make a Will

If you make a Will then you can have the ownership of your share in the property till you are alive.

As mentioned earlier once the gift deed is executed you will lose your share in property and would not be able to take further decisions regarding it. But if you make a Will then you can modify/change your decision any number of times according to your wish or circumstances.

You can update your Will in case there is a change in the circumstances. This normally includes important family changes such as the birth or death of a family member.

 

Posted in Property in India.