While transferring the rights in a self-acquired property, which one is better whether through a gift deed or through a settlement deed or any other medium, please enlighten on this and the advantages and disadvantages of each,
21 June 2021
As per TP Act, 1882 gift is a transfer of certain existing movable or immovable property given voluntarily without any consideration to a donee. "Settlement" means any non-testamentary disposition, in writing, of movable or immovable property whether by way of declaration of trust or otherwise made - (a) in consideration of marriage, (b) for the purpose of distributing the property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or (c) for any religious or charitable purpose as per Sec.2(24) of Indian Stamp Act. In some states of India, the Stamp duty is much reduced if the gift is given to blood relation (father, mother, son/daughter/brother/sister etc.) and also settlements. The gift is better.
22 June 2021
It depends upon case to case as to where and how the titleholder wishes to transfer, however, no straight jacket formula is there to advise which is better and how it should be preferred. Gift has its own strength whereas settlement is some other connotation where both of them has no comparison/ merits and demerits /correlation to each other. Your question paper is hypothetical and defective, re-write vis-a-vis your problem / facts of the case.
22 June 2021
family settlement deed will much convenient as the stamp duty will less than the gift deed and the Donner or settler rights exists till his / her death and after death the deed of family settlement will be come into picture to have enforce its terms and rights over the property, therefore in my opinion family settlement deed should prefer. thanks
22 June 2021
If property is self acquired by the person,he is absolute owner to transfer his property by any way i.e by gift or settlement deeds. In settlement deed, you have to pay stamp duty on market value of your property. However, in a gift deed can be executed for your own family i.e in blood relation i.e son , daughter, brother sister etc .very less stamp duty is chargeable .
24 June 2021
A gift deed means a legal document that describes voluntary transfer of gifts from a donor to a donee without any exchange of money. On the other hand, a settlement deed is a document that formalizes an agreement between relevant parties to settle a dispute.
Gift Deed is executed out of natural love and affection in favour of family members or loved ones whereas a deed of settlement is executed between larger family members or co-sharers to generally settle a dispute and demarcate or partition the assets. It can be prepared for both movable and immovable assets.\
there is no much difference between gift deed and Gift settlement Deed. Gift deed can be given to any person and stamp duty is paid accordingly. whereas Gift Settlement Deed is made in favour of family members /blood relations only and the stamp duty is lesser compare to Gift deed.