Gift Deed or Will? Transferring Property Within the Family in Haryana

Parents often want to settle property on their children, or one spouse on another. The two most common routes — a gift deed and a will — work very differently, and the right choice depends on when you want the transfer to take effect and how much control you wish to keep.

How a gift deed works

A gift is a transfer of existing property made voluntarily and without payment. For immovable property, Section 123 of the Transfer of Property Act, 1882 requires a registered instrument signed by the donor and attested by at least two witnesses, and the gift must be accepted during the donor's lifetime. Ownership passes immediately.

Once accepted, a gift generally cannot be revoked at the donor's will. If the donor wishes to keep a right of residence or income, that must be written into the deed carefully.

How a will works

A will takes effect only after the death of the person who made it, and can be changed at any time before that. It must be signed by the testator and attested by two or more witnesses under Section 63 of the Indian Succession Act, 1925. Registration is optional, though advisable.

The blood-relation concession in Haryana

Haryana has provided stamp duty concessions for gifts and transfers of immovable property between specified blood relations. Transfers that qualify are commonly called blood-relation transfer deeds. The relations covered and the conditions depend on the notification in force, so eligibility should be confirmed before the deed is executed. Registration and mutation are still required.

Which route suits you?

• A gift deed if you want the transfer to happen now and are comfortable giving up ownership.
• A will if you want to keep the property during your lifetime and retain the freedom to change your mind.
• A relinquishment deed where co-heirs of inherited property want to consolidate it in one person's name.

Documents to keep ready

• Title documents and revenue or municipal records
• Identity proof and PAN of the parties and witnesses
• Proof of relationship, for a family concession
• Passport-size photographs

See our pages on gift deeds, blood-relation transfer deeds and wills.

This article is for general information only and is not legal advice.