Rajesh (properitor) 14 March 2010

POA holder transferring property via a Gift deed

Dear All,

1. Mr. X held a house property.

2. On the death of Mr. X, the heirs of Mr. X granted a POA to Mr.S (Mr. S is the son of Mr. Y. Mr. Y is the brother of Mr.X)

The POA gives full powers to Mr.S giving him rights to sell/gift the property.

3.Can Mr. S gift the property to his father Mr. Y through the POA that he holds? is it legally correct to do so?

Would Mr. Y have problems in selling this property in future?

Thanks a lot in advance.

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6 Replies

AEJAZ AHMED (Legal Consultant/Lawyer) 14 March 2010

Dear Rajesh,

3. (i) Can Mr. S gift the property to his father Mr. Y through the POA that he holds?

YES Mr. S can Gift the property to his father .

(ii) Is it legally correct to do so?

YES IT IS LEGALLY CORRECT, but the power of attorney must specifically authorize the agent to make gifts from the scheduled assets to persons whom he would likely make gifts.

Would Mr. Y have problems in selling this property in future?

NO, there will be no future problems in selling the properties.

V. VASUDEVAN (LEGAL COUNSEL) 14 March 2010

In my view, this transaction is not valid. The Power Agent cannot gift the property to his father. All that power he would have been granted is to administer the property on behalf of the legal heirs and therefore, the ultimate beneficiaries are the legal heirs. In this case I don;t think the POA is coupled with interest (please check the

contents/purpose of the poa)

vasudevan

prasadrao (manager legal) 15 March 2010

In my view, the power of attorney holder can not gift the property to any one. the POA is given to lookafter the property on behalf of the executant and at most he can sell the property on behalf of the executant.

PRASAD ANAND RAO

Bangalore