Understanding the difference between will and gift deeds in India

In India, wills and gift deeds are legal instruments used for different purposes in the transfer of property. Here are the key differences between a will and a gift deed:

Will:

Definition: A will is a legal document that outlines the distribution of a person's assets after their death. The person creating the will is known as the "testator."

Execution: A will comes into effect only upon the death of the testator. The testator can modify or revoke the will during their lifetime.

Transfer of Property: Property is transferred to the beneficiaries only after the death of the testator. Until the testator's death, the property remains under their ownership and control.

Revocability: A will can be revoked or amended by the testator during their lifetime.

Probate: After the death of the testator, the will may need to go through the probate process, where the court validates the authenticity of the will.

Gift Deed:

Definition: A gift deed is a legal document used to transfer ownership of property from one person (donor) to another (donee) without any exchange of money.

Execution: A gift deed becomes effective immediately upon execution and registration.

Transfer of Property: The property is transferred to the donee during the lifetime of the donor. Once the gift deed is executed and registered, the donee becomes the legal owner of the gifted property.

Revocability: Generally, a gift deed is irrevocable. Once the gift is made, it cannot be easily revoked, unless there are specific conditions mentioned in the deed or under exceptional circumstances.

Registration: A gift deed must be executed on non-judicial stamp paper and registered with the relevant sub-registrar of assurances.

Common Aspects:

Registration: Both wills and gift deeds need to be registered to be legally valid.

Stamp Duty: Both documents may attract stamp duty, and the amount varies depending on the state laws.

Legal Formalities: Both wills and gift deeds must comply with legal formalities outlined in the Indian Registration Act, Transfer of Property Act, and other relevant laws.

In summary, while both wills and gift deeds involve the transfer of property, the key distinction lies in the timing of the transfer (before or after death) and the irrevocability of the transaction. It's advisable to seek legal advice when considering either instrument to ensure compliance with the applicable laws.