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Krishnan   06 December 2024

Can my father sell a property which has been done settlement deed with life interest

Dear experts,

I have 3 quick questions.

My father wants to put a settlement deed (retaining life interest) to me and my mother jointly. He wants the title in me and my mom's name to come into effect only after his lifetime. During his lifetime, he wants to retain the ownership. 

1) If this is the case, can my father have the right to sell the property without me and my mom's consent during his lifetime?

2) Secondly, I would like to know if settlement deed like that is indeed possible to structure, does the ownership comes to me and my mom automatically after my father's lifetime?

3) Thirdly, if my father wants to cancel such a settlement deed, can he do it at anytime by himself?

Thanks a lot!



Learning

 6 Replies

T. Kalaiselvan, Advocate (Advocate)     06 December 2024

Once your father has transferred his property to you and your mother by a registered settlement deed, he lost his rights of alienation in the property, however based on his Life interest rights he can enjoy the property till his lifetime.

2. Yes.

3. No, he cannot unilaterally cancel the settlement deed, also it should be within three years for executing a joint cancellation deed to cancel the settlement deed.

1 Like

Krishnan   06 December 2024

Originally posted by : T. Kalaiselvan, Advocate
Once your father has transferred his property to you and your mother by a registered settlement deed, he lost his rights of alienation in the property, however based on his Life interest rights he can enjoy the property till his lifetime.

Sir, if I'm not mistaken, the setlee (who is me and my mom) would be a beneficiary of the settlement only after the death of the settlor, right?
Thus, the settlee was never really a beneficiary of the settlement deed as the life interest clause made the settlee (which is me and mom) a beneficiary only after the death of the settlor.
When this is the case, the settlor (which is my father) still can't sell the property?

T. Kalaiselvan, Advocate (Advocate)     06 December 2024

A life interest is a right that only lasts for the lifetime of the person who benefits from it. The person who benefits from the life interest is called the life tenant.

To sell a property with a life interest, the consent of both the life tenant and the ultimate beneficiary is required.

The new owner of the property must comply with any conditions in the settlement deed..

When the life tenant dies, the life interest ends.

The property then passes to the beneficiaries or according to the terms of the settlement  deed

kavksatyanarayana (subregistrar/supdt.(retired))     06 December 2024

Yes.  I agree with the expert's views of Sri T.Kalaiselvan sir.

Krishnan   07 December 2024

Originally posted by : T. Kalaiselvan, Advocate
A life interest is a right that only lasts for the lifetime of the person who benefits from it. The person who benefits from the life interest is called the life tenant.
To sell a property with a life interest, the consent of both the life tenant and the ultimate beneficiary is required.
The new owner of the property must comply with any conditions in the settlement deed..
When the life tenant dies, the life interest ends.
The property then passes to the beneficiaries or according to the terms of the settlement  deed

Got it. Very clear explanation. Many thanks for your reply sir.

Regards

T. Kalaiselvan, Advocate (Advocate)     07 December 2024

You are welcome for your appreciations....

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