Settlement favouring multiple beneficiaries


My relative has a vacant land of one ground (2400 sft) purchased more than 20 years back. He is a senior citizen living with his wife in his own flat in Tamilnadu. His only daughter is living abroad and not interested in the property. He wants to settle the property in favour of his wife and his elder brother.

The property is likely to be sold after settlement and the brother would invest his share of the sale proceeds for the construction of flats for his two sons after demolishing his own house. The wife will make her choice regarding the reinvestment options afterwards.

As regards the settlement in favour of brother -  if  the settlement is  made in favour of wife and two nephews (sons of his elder brother) to facilitate the nephews to invest their share of the sale proceeds in the flats to be constructed by their father.- Can this be done in one settlement deed itself to reduce the registration work?

As regards Capital Gains Tax, will it make difference if Gift is opted instead of settlement?

 
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LAWYER

If you want to dispose off the property during the life time of  the owner then you can make a settlement deed for all the beneficiries.

However if you intend to use the acquire the property after the death of the owner then a will deed is enough for that purpose.

The diughter must also execute a relinquishment deed  thereby relinquishing her share otherwise in future yiu can face problem

 
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It is self acquired or ancestral. If it isself acquired he has right to dispose as per his wishes thru gift or will deed. If He writes will it becomes effective after his death if he gifts it becomes effective at once .he can do it in single deed.
 
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It is self acquired property and after execution of settlement deed in favour of wife and nephews it will be sold . The nephews will invest their share of sale proceeds for the construction of flat in their father's premises. 

 

 
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