Amitabh Bachchan handed one of his estates to his daughter, but you can, too

Several states have provided special stamp exemptions or rebates on the instrument of gift where such a donation is from a direct family member or spouse.

Jayshree Navin Chandra & Mona Dewan

There have been numerous reports of high-net-worth individuals and celebrities giving their property to their children or grandchildren. Bollywood star Amitabh Bachchan recently gave his daughter Shweta one of his Juhu mansions as a gift. Some media outlets have reported that Ranbir Kapoor intends to register his new mansion in the name of his daughter, Raha. But so can you.

A gift of immovable property is one of the ways to transfer existing immovable property to another without exchanging money. The essence of a gift is that the donor does it voluntarily out of love and compassion for the recipient.

Here is why some people gift a property instead of willing it

One of the important considerations behind such decisions to gift during one's lifetime may be to hand over the property to the intended beneficiary and to give finality to one's estate plan regarding one's assets during one's lifetime, as well as to avoid legal hassles associated with inheritance and mutation, as well as to avoid family disputes and litigation among legal heirs.

Transfer by instrument of gift that is duly executed and registered is much more difficult to challenge than bequest of property by WILL, where the beneficiary(ies) frequently struggle to establish the authenticity of the WILL so that the mutation can be effected in the municipal records.

The notion of introducing an inheritance tax is also being discussed. According to news sources, the government may consider imposing an inheritance tax on assets received through intestate or testamentary succession. Parents are judiciously preparing and structuring their estate bearing in mind tax efficiency and the ease of intergenerational transfer of properties.

Some states offer waivers for donating property

Several states have announced special stamp exemptions or rebates on the instrument of gift when the gift comes from an immediate blood relative or spouse. States such as Maharashtra and Uttar Pradesh have imposed minimal stamp duty costs, and in Haryana, stamp duty is completely abolished for transfers of property by gift to a spouse or a certain group of immediate family members. This cost savings has prompted some family members to consider gifting their flats, houses, plots, business units, or other immovable assets to their spouse or children.

Source: Hindustan Time