In every family, properties are divided after some time. In old age, every parent transfers their property to their children so that there is no dispute of any kind. However, there is a process to transfer property which has to be followed. Parents can transfer property in the name of their children through nomination. Apart from this, if the parents wish, they can change the nomination at any time and register someone else’s name. Let us know its process.

If you are also planning to transfer your property in the name of your children or someone else in the family, then we are telling you about the methods of transferring property. By adopting these methods, you can transfer your property to your children without any dispute.

Property transfer through nomination

Parents can distribute property among their children through nomination. In this way you can distribute your property equally among all the children. Parents can transfer their property through nomination, and if they want to change their nomination then they can register some other name also. There is very little scope for disputes arising when property is transferred in this manner.

Distribute through will

Parents can also make a will to distribute their property among their children. In the will, they also get the facility to tell how much share of the property they want to give to whom. According to the Indian Succession Act, 1925, Will is a legally valid document. People who have more property, they prepare their will in advance. Due to this, even after the death of the property owner, only the eligible person gets the right to his property as per his wishes.

It is necessary to have valid property documents

To transfer property without any dispute and hassle, it is most important that you have complete documents of the related property. Having documents helps you avoid any disputes. Along with this, it is also easy to verify through documents what is your total wealth. In this way you can transfer your property in the name of children.

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Dr. Prashant Patel is 75 years old and has retired. During his lifetime, he has accumulated huge amount of money through investments and earned huge returns. He has three children and is currently living with his elder son’s family.

His younger son works in the UK, while his daughter is married and working as a doctor. He knows that his children know about his personal wealth and are expecting to inherit it. So now he wants to know how his property should be distributed equally among his children without any disputes, procedural hassles and in a tax-efficient manner.

Can adopt these methods

Nomination can be a way for parents to transfer their property to their children. Through which they can distribute the property equally to their children. Also another, simpler option is to gift these to kids, but this is an irreversible process. Apart from this, Will can also be an option.

But the Will which calls for the formation of a Trust or a Hindu Undivided Family (HUF). So Dr. Patel needs to choose such option which suits his needs and also helps in saving tax (Tax Rebate). In India inheritance itself is not subject to property tax. But it should also be noted that income from inherited property is taxable.

Documentation is required

Whichever option Dr. Patel chooses to transfer his property, he will have to go through the documentation process for all of it. If he opts for nomination, he can change the nominee any number of times during his lifetime. Along with this, in order to transfer the investment to him, his children will have to provide necessary documents. The nominee holds the property as a trustee till the settlement of disputes, if any, under the succession laws. It can be amended anytime.

Whichever route the Patels decide to take, they must ensure that all three children are informed about it and are aware of the procedures or operational aspects for proper transmission. Along with this, children are giving their consent legally as well.

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