Amit K (Executive) 04 April 2017

Transfer of property as per will to avoid by ba

I am staying with my mother in an apartment owned by her in Mumbai City. Her age is 70 years old. My father passed away about 25 years ago and there are no other heirs to this property. I dont have any children and stay with my wife and mother. This said aprtment has clear title and has not been mortaged to any bank.

Myself and my wife run our own business (private ltd company) for which we have availed of Bank limits. Both myself and my wife have given our personal gaurantees against this limit. Our company is under heavy losses and the collateral offered would not cover the loan availed of from the Bank. Neither are there are any assets in my or my wifes name to cover the full loan.

In case of death of my mother, due to her old age, the said residential property shall get transfered to my name. In such a scenario, the bank may invoke my personal gaurantee and confiscate this property to recover their dues.

Is there any way we can avoid the occurence of the above. Can my mother draw up a will and ask for transfer the property, after her death, to another company/ firm which even though owned by us but which can not be attached against our personal gaurantees.

Let me know the best solution to above. Thanks

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4 Replies

Kumar Doab (FIN) 05 April 2017

It is believed that you are all Hindu.

Confirm!

Kumar Doab (FIN) 05 April 2017

One Prespective: If possible why don’t you sell the flat and pay the debt and check in at some smaller property even if on rent and escape from proceedings by lender bank.

Kumar Doab (FIN) 05 April 2017

Other Prespective: Who was first owner: Your Father or Mother?

If it was your father then if he has not left any valid WILL then it is simple case of inheritance and his ClassI legal heirs: Mother (if alive as on date of death), wife ( your mother and she is alive), sons and daughters……………………………………………..In that case you have a share and bank stake a charge on it.

If it is your Mother; then she has full right to dispose the property in her life time by a valid/registered deed e.g; WILL, sale/ gift etc ………………..in anyone’s favor.

It is mandatory to probate the WILL in Mumbai, in court of pecuniary jurisdiction. Check expenses at your level.

In case of property owned by Hindu female that dies without leaving a valid WILL for her self acquired estate : the first right is of her husband, sons and daughters……………….

In any case Bank can stake charge on/recover from estaste of borrowers/debtors.