A gift is defined under the Transfer of Property Act, 1882
as "the transfer of certain existing moveable or immoveable property made
voluntarily and without consideration, by one person, called the donor, to
another, called the donee and accepted by or on behalf of the done."
Similarly, a Will, as defined under the Indian Succession Act, 1925, is the
legal declaration of the intention of a testator with respect to his property
which he desires to be carried into effect after his death. It is a unilateral
document and takes effect after the death of the person making it.
Will Deed Vs Gift
Deed
1. The main difference between the two is that a gift deed
operates as soon as it is executed (unless a contrary stipulation has been made
therein) and the assets gifted vest in the donee during the lifetime of the
donor, whereas a Will is operative only on the death of the testator and
properties bequeathed through the Will vest in the legatees only on the death
of the testator.
2. A Will does not
require to be stamped or registered. A gift requires to be stamped as per
applicable stamp laws. If it is a gift of immoveable property, it would have to
be registered under the provisions of the Indian Registration Act, 1908.
Other Points
1. A Gift Deed with respect to a self-acquired property can
be executed to anyone, as long as you are competent to contract.
2. The gift also has to be accepted by the donee, or anyone
else on his behalf, during the lifetime of the person making the gift.
3. A Will is the cheapest mode of transferring property, to
persons whom you wish to.
4. The property can be bequeathed under a will to even a
stranger.
5. It is always advisable to register the will, to minimise
any litigation with respect to succession of your properties.
6. Any asset inherited, under a will, is exempt from income
tax laws.
7. In case all the assets are not covered under the Will,
the assets that are not covered, will be inherited by the legal heirs of the
deceased as per the succession law.
8. Under the law of succession applicable to Hindus, there
are no restrictions on a person in bequeathing his assets to anyone to the
exclusion of his legal heirs.
9. If your wish is only to ensure that the assets owned by
you pass on to persons of your choice, only after death and you want to enjoy
and have control over those assets during your lifetime, then, bequeathing your
assets through a will is advisable.
10. A 'Will' is always revocable during the lifetime of the
testator, even though it is registered or not whereas, gift deed once given is
irrevocable.
11. If you transfer all or a substantial portion of your
assets to your legal heirs by way of Gift Deed, it may leave you in a difficult
position in your old age. Hence, make Will and enjoy property income by way of
rent etc, throughout your life.
By Pallakki
Veerabhadrappa,
Advocate #207, 17th C Main, 4th Sector,
HSR Layout, Bangalore - 560 102. Ph: +91-80-25722579,
Mobile +91-9741497005. Email-veerpallakki@gmail.com
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