WILL or GIFT DEED – Which document is more suitable?
Which document is more suitable in what situation, for transferring properties to your kin, relatives, near ones, etc.?
Introduction
Year 2020 has brought in new dynamics in all the fields. Not only the Government but citizens are also trying to adapt to the changing situations. The pandemic has made people give away their traditional way of thinking. The concerns of citizens have changed now. It has been observed that, due to the clouds of uncertainty brought in by the present situation, most of the people have started thinking about making proper arrangements with respect to their properties, whether self-acquired or ancestral. This sudden change in approach has made people to execute appropriate Deeds and Documents with respect to disposal of their properties. One question which has been repetitively raised by our clients is regarding the choice between Will and Gift Deed. In this post, this question has been addressed and we have tried our best to explain concepts attributed to these documents.
Will and Gift Deed – Explained
Will is a written declaration of the author’s/maker’s/testator’s wish as to how and in whose favour, the properties owned by him shall devolve, AFTER HIS DEATH.
Kindly visit our earlier post dedicated to WILL, here.
Gift Deed is a document by which ownership of the property is transferred without any Consideration, IMMEDIATELY on execution and registration.
Kindly visit the post dedicated to GIFT DEED, here.
What difference does it make?
| WILL | GIFT DEED | |
| Transfer of Rights & Title | After Death | Immediately |
| Acceptance By Beneficiary / Donee | Not required | Required |
| Registration of Document | Not-Mandatory | Mandatory |
| Revocation | Can be revoked during life-time | Cannot be revoked |
| Stamp Duty | Not Applicable | Applicable (Case-to-case basis) |
Which one is Better?
It depends upon circumstances, intention and wish of the owner. Generally, we cannot say a particular way of transfer is better than the other. We need to decide based on one’s requirement and intention. Therefore, it is advisable to consult a legal professional for explaining your situation and seek proper legal consultation as to Will or Gift Deed.
What advice?
In case you want to enjoy control over your properties during your lifetime and intend to pass on the said properties to the persons of your choice, only after your death, then making a Will is suggested. However, in case you are not interested in day to day management of the properties and also do not want the beneficiaries / relatives / heirs to fight litigation for your properties, then executing a Gift Deed will be an appropriate option.