Gift Deed vs Will: What You Must Know Before Transferring Property to Family
Transferring property to family members is a significant decision, both emotionally and financially. Many property owners grapple with the choice between using a gift deed or a Will to pass on their assets. While both are legal tools for transferring property, they differ in timing, tax implications, and legal consequences. Understanding these differences is crucial for smooth estate planning and avoiding disputes. What is a Gift Deed? A gift deed is a legal instrument used to voluntarily transfer ownership of property or assets during the lifetime of the donor without any monetary consideration. Once the gift deed is executed, registered, and accepted by the recipient, the property immediately becomes theirs. Consider the example of Ramesh Mehta , a 68-year-old retiree who owns a house valued at ₹2 crore. If he chooses to transfer his house to his daughter, Neha, via a gift deed, she becomes the legal owner immediately after registration. However, Ramesh will no longer have owners...