naresh A Mr. (Others) 17 February 2018

Is release deed or gift deed to be used here?

Hi Experts, I need your valuable advice in the following scenario.

There are 3 sisters say A, B and C with "A" being the Eldest and "C" being the youngest. Their mother had an independent house in her name and passed away last year. The mother had made a WILL according to which the 3 sisters will have an equal share of 1/3rd Undivided share in the property.

Now the middle Sister "B" wants to gift her full share in the property (which is 1/3rd UDS of the property) to the youngest sister "C" by releasing her rights in favour of the youngest sister.

1. Now since the sister "B" wants to gift her share to "C" for FREE WITHOUT any consideration of money, will she have to do the same through a RELEASE DEED or through a GIFT DEED? What is the difference between the 2 i.e RELEASE DEED and GIFT DEED in this particular scenario?

2. Also what will be the Stamp duty and Registration charges as per the revised government rates in TAMIL NADU to be paid by the Sister "C" who is going to get the gift in this scenario?

3. And after receving the gift, will the sister C have to pay any tax for the gift received from her sister B?

Kindly help.

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7 Replies

Kumar Doab (FIN) 17 February 2018

It is believed that all involved are all Hindu.

Has the said WILL been duly acted upon without any cloud on IT?

Has the authority under whose jurisdiction property falls duly acted upon without any cloud on IT and updated ownership in the names of beneficiaries in mutations records and copy of updated mutations records obtained?

If the (valid) WILL has surfaced then 1st of all IT has to be duly acted upon without any cloud on IT.

Or IT is mere piece of paper and succession may set in.

Has the WILL been duly acted upon without any cloud on IT?

Confirm!

Kumar Doab (FIN) 17 February 2018

In case of Hindu woman that has died without disposing property owned by her self acquired/absolute property/estate by a valid/registered deed/WILL; The 1st right for equal share is of her legal heirs i.e Husband ( if alive as on date of death), sons, daughters………..

If the property is acquired from parents side the 1st right for equal share is of her legal heirs i.e sons, daughters………..and in their absence legal heirs of her father.

If the property is acquired from husbands side the 1st right for equal share is of her legal heirs i.e sons, daughters………..and in their absence legal heirs of her husband. The property from mother’s side is not ancestral.

You can determine the share of each legal heir accordingly and see how and how much gets vested in each legal heir.

The process and procedure to get share updated in mutation records is simple.

The authority under whose jurisdiction property falls has a set procedure for such matters if (valid) WILL has surfaced; Testate Succession…….and the prescribed forms, procedure, process is available in O/o Authority and even on website. Certified copies of the death certificate, WILL, legal heir certificate/affidavit (per local procedure/precedence) are basic requirements. The authority may ask for NOC from legal heirs (other than beneficiary) and/or ask to release newspaper advt inviting objections if any and/or write to legal heirs to submit objections if any in a set time.

If the ILL is not contested authority ay act upon the WILL.

If contested WILL lands up in probate court and court shall decide.

The authority shall update share as per provisions of personal law that applies/duly acted upon WILL/Probate, in mutation records.

By the updated mutation records the legal heir(s) attain rights equal to that of owner and can enjoy/dispose the property/share like owner. The only thing remains is partition by boundaries. That can be achieved either amicably or thru court.

Kumar Doab (FIN) 17 February 2018

Thereafter owner can release/relinquish/gift/sell in favor of Co-sharer or anyone…devided/undevided!

The stamp duty/charges amongst blood relation/relatives , others is a state subject and you may inquire from SRO………………and chose the deed that is suitable to you.

naresh A Mr. (Others) 17 February 2018

Thanks so much Kumar Sir for the detailed explanation. The Will was registered by the mother in the Sub-regstrar office and all her children are OK with whatever is there in the Will.

Kumar Doab (FIN) 17 February 2018

Originally posted by : naresh A Mr.
	Thanks so much Kumar Sir for the detailed explanation. The Will was registered by the mother in the Sub-regstrar office and all her children are OK with whatever is there in the Will.