What are Will deed and Gift deed?

Let’s explore the concepts of Will deeds and Gift deeds.

A will (also known as a testament) is a legal document that outlines a person’s wishes regarding the transfer of ownership of their property upon their death.

• Legal Declaration: A will is a legal declaration of the testator’s intent to dispose of their assets after their demise.

• Effect After Death: A will comes into effect only after the testator’s death.

• Written or Oral: Wills can be in writing or, in certain jurisdictions, oral (nuncupative wills).

• Transfer of Assets: It specifies how the testator’s assets (such as property, money, or possessions) should be distributed among beneficiaries.

• Revocable: A will can be revoked multiple times and need not be registered.

• Types of Wills: There are various types of wills, including privileged, unprivileged, contingent, joint, mutual, and holograph wills.

A gift deed is a legal instrument used to transfer ownership of an existing property from one person (the donor) to another (the donee).

Key points about gift deeds:

• Transfer During Lifetime: Unlike a will, a gift deed allows the receiver (donee) to become the owner of the property during the transferor’s (donor’s) lifetime.

• Irrevocable (Usually): Once executed, a gift deed is generally irrevocable, except under specific circumstances.

• Essential Elements: A valid gift deed requires elements such as existing property, no consideration (it’s a gift), free consent of the donor, and acceptance by the donee.

• Types: Gift deeds can be revocable or irrevocable.

• Registration: Gift deeds must be registered with the appropriate authorities.

• Tax Implications: Gift deeds have tax implications, especially under income tax laws.

• Timing: Wills take effect after death, while gift deeds transfer ownership during the donor’s lifetime.

• Revocability: Wills can be revoked, but gift deeds are usually irrevocable.

• Registration: Wills need not be registered, but gift deeds must be registered.

• Purpose: Wills focus on asset distribution after death, while gift deeds involve immediate transfer of ownership.

Hope this information helps you!

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