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Ravindranath (Group Head of Compliance)     05 March 2011

Family Settlement

My mother inherited 4 properties in Chennai from her Mother.  1 property was settled during my Grandmother’s lifetime where my mother has life interest and thereafter to her children.  The other 3 properties were settled through a Court decree by way of family settlement after my Grandmother’s demise, and hence I believe that she has absolute rights over these properties.

As my mother is getting old and our family size is too big (6 sons and 4 sisters), we all including my mother now desire to arrange for a settlement deed, so as to avoid any complications later.  The intention is to try and settle all daughters with cash (if possible) and for sons settle the properties as per her own wish, based on individual contributions (including financial support in the past and towards settlement for Daughters) and their needs.

Please can anyone assist me with the following queries:

1.      Can my mother write a settlement deed independently, or should it require to be signed off by all children?

2.      I am right in assuming that she has absolute ownership in the 3 properties settled through a Court Decree.

3.      Can the settlement deed include all four properties, or should it exclude property where she has only life interest.  What if the settlement deed refers to it and also states that they release their rights in this property in favour of her brothers / mother, who thereafter distributes the same.

4.      Can anyone assist with the professional services and take us through the overall process and documentations in this regard. 

 Ravindranath. R



Learning

 2 Replies

K S Narayana Rao (District Registrar)     05 March 2011

Sir, If you want to get rights after your mother it is better get a Will may be registered.  This will cost less.  If you desires immediate rights property. Geft (settlement) by your mother may be executed. But verify the geft tax which is to be liable to pay to the IT department.  Your mother may also direct a partition in this regard which gives Sechedulewise details of proplerty alloted to each individual in the case immediate right created in each individual proplerty. good luck ksnarayanarao@yahoo.com

Ravindranath (Group Head of Compliance)     05 March 2011

Thank you Mr. Kaku,  I am told that in Tamil Nadu, making a will in case of property is not advisable as it will still require the same to be probated and stamp duty at 4% or so need to be paid.  Further, this can be disputed by anyone later as the probate will require all legal heirs to provide their acceptance then.   Minds can change later.  Hence, I am told that Settlement deed is a better option and also told that even in Settlement deed, whilst the property gets transferred immediately, we can state a provision that my mother would enjoy the property during her lifetime.  If my mother directs partition, does this require everyone's consent, or can she do it herself independently?


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