Property Transfer Rules: How can parents transfer property to their children? learn the rules

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How to transfer your property to children: Nomination can be a way for parents to transfer their property to their children. Through which they can divide the property equally among their children. Also another easy option is to gift these to kids.

Dr. Prashant Patel is 75 years old and has retired. During his lifetime, he accumulated a huge amount of money through investments and earned huge returns. He has three children and is currently living with his elder son’s family.

His younger son works in the UK, while his daughter is married and working as a doctor. He knows that his children know about his personal wealth and are expecting to inherit it. So now he wants to know how his property should be distributed equally among his children without any disputes, procedural hassles and in a tax-efficient manner.

You can follow these methods

Nomination can be a way for parents to transfer their property to their children. Through which they can divide the property equally among their children. Also another easy option is to gift these to kids, but it is an irreversible process. Apart from this, Will can also be an option.

But the Will calls for the formation of a Trust or Hindu Undivided Family (HUF). Therefore, Dr. Patel needs to choose such an option which suits his needs and also helps in saving tax (Tax Rebate). In India inheritance itself is not subject to wealth tax. But it should also be noted that income from inherited property is taxable.

Documentation Required

Whichever option Dr. Patel chooses to transfer his assets, he will have to go through the documentation process for the same. If he opts for nomination, he can change the nominee any number of times during his lifetime. Along with this, necessary documents will have to be given to transfer the investment to your children. The nominee holds the property as a trustee till the settlement of disputes, if any, under the succession laws. It can be amended anytime.

Whichever route the Patels decide to take, they must ensure that all three children are informed about it and are aware of the procedures or operational aspects for proper transmission. Along with this, the children are also giving their consent legally.

(pc rights of employees)

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