Gift Deed or a Will: Properties can be transferred to someone you love, without any consideration, by way of a gift or through a will
TS- RERA Licensed Real Estate Agent from Hyderabad
Transfer of property by way of Gift Deed
If you wish to transfer a property, so as to make the donee enjoy the property immediately, this can be done by way of a gift. You can gift a self-acquired property to anyone, as long as you are competent to contract, as per the provisions of the Indian Contract Act. Any person who is of sound mind and not a minor, can enter into any contract, as long as he is not an undischarged insolvent. An immovable property can be gifted, by executing a gift deed. You need to pay stamp duty on the market value of the property, as on the date of execution of the gift deed.
Transfer of property through a Will
A transfer of any property can also be made by way of execution of a will but the vesting of the property will take effect, after the death of the person executing the will. As per the prevalent laws, a will is neither required to be stamped, nor is it required to be registered. So, a will is the cheapest mode of transferring your property, to the persons whom you wish to.
Gift Deed versus Will: Which option should a property owner choose?
The answer to this question is difficult, as circumstances for every person are different. However, one can consider certain points, before deciding on a specific course of action. If your wish is only to ensure that the assets owned by you pass on to persons of your choice, only after death and you want to enjoy and have control over those assets during your lifetime, then, bequeathing your assets through a will is advisable. A will is also advisable when you want to ensure a smooth succession of your assets after your death and where your purpose is to let your nominees inherit your properties.
