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Dev Lall (CEO)     09 September 2009

HUF and Partition

I am the Karta of the HUF.  Father is no longer alive.  I have one married sister and mother is still alive.  I want to disolve the HUF and/or create my own HUF and transfer all the wealth from current to my HUF. 

What is the simplest manner to do so and what are some of the tax implications one will have to face in this including risks etc.  Partition has been suggested but tax implications seem high. 

Also if the HUF continues what are the married sisters rights under this for perpetuity.  Is it better to keep the current HUF going or for the sake of simplicity and to ensure no future issues is it better to dissolve it know amicably?



Learning

 2 Replies

Kamal Grover (Advocate High Court Chandigarh M:09814110005 email:adv.kamal.grover@gmail.com)     09 September 2009

Even if you start your own HUF excluding other memebers of the family they can demand their right. Moreover it is ur HUF and you are the head, why dont you continue the same.

Regards

adv.kamal.grover@gmail.com

Dev Lall (CEO)     11 September 2009

If I were to continue the current HUF what stops the other co parcener from demnading right of current especially when it gets reduced to only 2 people.  Currently the mother is the balancing and deciding factor.  Post this issues are to be avoided if an amicable settlement and division can be reached now.  If an alternate way of protecting the assets of the HUF without partitioning it is there then please advise

 


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