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Want to transfer the purchased flat to your wife only, but are confused between the gift deed and the will? Finding an option with low expenses, no tax and minimal paperwork becomes a challenge for many people. Know the advice of experts – which method is the easiest, safest and dispute-free in future.
New Delhi. A man living in Kolkata wants to transfer his two-bedroom flat, purchased in 2005-06, to his wife’s name, so that after his death, the entire ownership of the flat goes only to his wife and the children cannot claim it. They want to understand whether they can get a gift deed made, make a will or adopt some other method so that they do not have to pay additional taxes, pay heavy fees, or do cumbersome paperwork.
Most Affordable Option: Registered Will
According to experts, the easiest, safest and least expensive way in this situation is to get the Will registered. Experts say that it is necessary to register the will in Kolkata, because it eliminates the need to take probate from the High Court. As per Section 213 and 57 of the Indian Succession Act, 1925, a registered will in Kolkata helps in preventing any future disputes. The special thing is that only a nominal registration fee is charged on a registered will and there is no stamp duty or capital gains tax on it.
Why is Gift Deed less suitable?
The property can also be transferred to the wife’s name through a gift deed, but many expenses are added to it – like stamp duty and registration charges. In many states this amount can be quite high, making this method costly. Additionally, once the gift deed is registered, the property will immediately vest in the wife’s name, meaning co-ownership with the husband ends immediately. In many cases this situation is not favorable, hence experts do not consider it a better option in this situation.
Will provides legal security and mental peace
If the person wishes to remain a co-owner during his lifetime and the wife to become the sole owner thereafter, then a registered will is the safest route. It does not cost much, nor does it involve additional taxes, nor does it create any legal complications. This not only gives the wife stronger legal rights in the future, but also ensures that children or other heirs cannot interfere.
