Huf
Mani S
(Querist) 24 January 2013
This query is : Resolved
I am the Kartha of HUF. There is little investment asset in the name of HUF. Whatever little wealth that myself and my wife have are all self-earned and are in our respective names.
I have two sons. Both are married and they have no children yet.
After our death, we want all the wealth to come under HUF and we want our elder son to succeed me as Kartha. What are the actions that I need to initiate to make this happen.
S. Mani, Velachery, Chennai
M V Gupta
(Expert) 25 January 2013
Generally HUF properties are those which are inherited by operation of law on the death of a person. If you fail to execute a will then on ur demise the properties will devolve on all your heirs by operation of law and therefore fall within the hoch poch of the HUF assets. In that case the eldest male member of the family (i.e., your eldest son) would become the Karta of the HUF
Mani S
(Querist) 25 January 2013
Thank you Mr. Gupta, Mr. Bharat Chugh and Mr. Prabhakar Singh. If I understand the answer right, the assets presently in my name and my wife's name will, after our death, automatically become that of HUF along with presently held assets held by HUF. In that case how will the actual name transfer from self/wife to HUF would take place in the relevant records? In other words, what procedure the next Kartha (or the present Kartha) should follow to transfer the assets to the name of HUF, so that from then on HUF owns all the assets. Also, kindly clarify who will be the Kartha if my wife survives after me. S. Mani
M.Sheik Mohammed Ali
(Expert) 26 January 2013
hi, if you want to make HUF call me my friend and senior counsel Mr.Ramesh Manikandan, Perungudi, Chennai - 9841786197
M V Gupta
(Expert) 26 January 2013
Your wife's property will not become HUF property on her demise. The succession to her property, in the absence of will executed buy her, will although be by operation of law on all ur children in equal proportion, they will constitute self acquired properties of your children. What forms part of the HUF assets are those which devolve on the death of the Karta, who is always the senior most male member of the family. The successors will have to approach the Thalati to get their names incorporated in the 7/12 or the Adangal, as it is called in Southern India.
ajay sethi
(Expert) 26 January 2013
agree with mr gupta
Mani S
(Querist) 27 January 2013
Can we (self and my wife) then write a WILL (and have it registered) that all asset (wealth) standing in our respective names (on the date of our death) shall automatically become the asset of HUF (of which I am the Kartha till my death to be succeeded by my elder son) after our death?
M V Gupta
(Expert) 27 January 2013
So far as ur properties are concerned, as stted in my earlier reply, there is no need for u to make a will in order to make them HUF properties. So far ur wife's properties are concerned, ur desire to make them HUF properties appears strange. The legal position is that a coparcener of HUF(i.e., a male member of the family) can by declaration or voluntary action throw his assets into the common hoch poch of the HUF properties and not the wife, who is not a coparcener.
Mani S
(Querist) 27 January 2013
Thank you Mr. Gupta. Since I am not a lawyer I have difficulty in understanding the jargon. The entire assets of self and my wife are earned by me. I just want the whole lot to be managed by my elder son (for the derived benefit of both sons. At the same time I do not want the value of these assets affect his IT liability. That is why we prefer to bring my assets and my wife's into HUF. About mine, I am now clear. About my wife's can they be moved to HUF by a WILL to HUF. If not how else?
Anirudh
(Expert) 28 January 2013
Dear Mr. Mani,
You say that there is a HUF already existing.
But, there are separate properties (in your name and your wife's name).
Your wish is that they should also be made HUF properties after your demise.
You want to know how to do it?
My answer, you can declare your individual property as that of the HUF now itself. There is no bar. The moment that you so declare and file your income tax returns, the property will become the property of the HUF. This process is called "Blending".
However, the property in the name of your wife cannot be brought to the HUF by simple declaration, since she is not the co-parcener of the existing HUF. However, if she wishes, she can gift the property to the HUF. Then the property would become the HUF Property.
While you want your individual properties should be made HUF after your demise, my above suggestions will give effect right from the moment the suggestion is implemented in your own life time, and not after your demise.
