Property
Querist :
Anonymous
(Querist) 07 April 2011
This query is : Resolved
Late husband gave life interest in the property in which our home is (1.2 acres). Have already divided this property among my sons and live in the house that will go to the eldest son (he is abroad).
He also gave me life interest share in plantation property together with our sons which was a registered partnership firm.
During course of widowhood, this property had increased by 50 pct in acreage from the profits of the firm.
In 1986 the plantation property was divided into two new firms, sharing the property between two sets of sons & myself.
I gave up my share in one division and in lieu was given 1/3 share in the second division.
New firm was registered & all property documents put in the names of the 3 partners including myself.
Post division the new firm that I was part of has bought from the profits of this new firm, another 20 pct property in acreage.
Now I want to provide for my married daughters.
My question is whether in 1986 the life interest part left to me by my late husband changed into absolute interest with the formation of the new firm.
And that now I can Will my 1/3 share in the present firm to my daughters, not in the form of property but in monetary terms based on value of the property on the date of my demise, payable by the continuing partners over say a 5 year period with simple interest on the outstanding .
My fellow partners, my sons, say I cannot do so and the entire property comes to them after my demise as it evolved from the life interest given by my husband to me more than 40 years ago.
I am old now and want to settle this matter at the earliest
Raj Kumar Makkad
(Expert) 26 November 2012
The version of your sons is 1/2 true. Even after formation of new firm, your status over the properties has not changed, however, the life interest over the entire properties which you husband had left some 40 years ago, if earn interest or any other income thereto, it entirely belongs to you and you are free to exhaust it during your life time. This also means that whatever income you have generated during this entire period, you are its absolute owner and can give it during your life time or by way of will etc.
So far as claim of your sons is concerned, it is not true and legal. After your demise, your daughter shall also be entitled to inherit the absolute properties left by you which stand generated out of income derived from the life interest properties.business.
For more details, you should hire the personal services.
