Settlement deed- life interest pls advice.
Krishnan
(Querist) 11 December 2011
This query is : Resolved
Hello, Please advice me on this urgent matter,
my name is krishnan, my grandfather had given me a irrevocable settlement deed(registered) with life interest on him. for the house we live in for almost 25 years, he has earned himself, following the unfortunate demise of my father. now the settlement deed has life interest along with a condition that i can utilise the property and only my unborn kids( i am single now) will have full rights over the house to mortage or to even sale deed.. he had also said no other relation of him have any claim over it and that even he will not cancel the settlement deed following any change of heart in future showing any reasons.
the problem arises now, the goverment has acquired the land for bridge construction, almost all the part of the house has been aquired, the goverment had intitially sent notice on my grandfather name but then i showed them the settlement deed on my name and got the notice in name, on later stage the special deputy collector for land aquisition had called me and said since my grand father is alive so the money will only be given to him, my grandfather is living with his other son( my uncle,my dads elder brother) now for 4 months, my uncle has taken my grandfather pending the knowledge of money bein given for the house, now he claims he has a share of this property, my grand father is also siding with him since hes the only son left now.
my sincere and urgent question is, can a settlement deed be cancelled by my grandfather which he had given to my unborn kids through me. can my grandfather give the money to my uncle even if he wanted, what happens to my unborn kids, is it even legal my uncle is showin interest in this property, what are my options..please advice. thanks in advance..
Raj Kumar Makkad
(Expert) 11 December 2011
You have only life interest in the property whereas your unborn children have full ownership rights as per settlement deed and your grand-father is also consenting party thereon as on date but the situation has now changed due to intervention of Govt. means an unavoidable circumstances out of control of all parties concerned.
Had you children born as on day, they would have become full owners of the demised property and in that situation, everything would have been ok but being having only a life interest, you can agitate only up to that extent and can demand compensation from your grand father but he cannot be bound now to hand over entire money to be received from Govt. against LAC in your hand for further handing over to your unborn children. Fresh arrangement can be made by your grand father. Persuade him to abide by his undertaking. You can do nothing except to convince him. Your uncle shall also try but you have an upper hand.
Guest
(Expert) 12 December 2011
Any share in the money earned, as a cost of acquired property, depends solely upon your grandfather who was the absolute owner and is still alive. After acquisition of property by the Government, all your rights granted by the settlement deed in your favour get vacated automatically due to changed circumstances. Even your children after getting married, may not have any right in the non-existent property by that time.
So, better try to humbly convince your grandfather about your share, instead of thinking for any legal recourse.
M V Gupta
(Expert) 13 December 2011
Life interest in property entitles you only to enjoy fruits of the property without title to the property. The Settlor continues to be the owner until the final vestiture in your son takes place. therefore since the property is acquired by the Govt before hte final vestiture the compensations amount which is in the nature of "sale proceeds" would belong to your grand father. He will have full rights of enjoying the proceeds. It will be his pleasure to give any protion of it to his sons and grnad sons. You do not have any legal right to object to his way of enjoying the proceeds.
