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 distribute the property equally to their children. Also another, simpler option is to gift these to kids.
Dr. Prashant Patel is 75 years old and has retired. During his lifetime, he has accumulated 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.
Can adopt these methods
Nomination can be a way for parents to transfer their property to their children. Through which they can distribute the property equally to their children. Also another, simpler option is to gift these to kids, but this is an irreversible process. Apart from this, Will can also be an option.
But the Will which calls for the formation of a Trust or a Hindu Undivided Family (HUF). So Dr. Patel needs to choose such option which suits his needs and also helps in saving tax (Tax Rebate). In India inheritance itself is not subject to property tax. But it should also be noted that income from inherited property is taxable.
Documentation is required
Whichever option Dr. Patel chooses to transfer his property, he will have to go through the documentation process for all of it. If he opts for nomination, he can change the nominee any number of times during his lifetime. Along with this, in order to transfer the investment to him, his children will have to provide necessary documents. 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, children are giving their consent legally as well.
