What are Will deed and Gift deed?

During my first case of transferring a property in my client’s name, I came to fully understand the gift deed and will. In India, both will deeds and gift deeds are legal documents used to transfer property. But they serve different purposes and have distinct characteristics. Let me tell you the will vs gift deed difference so that you can understand which is better.

Will or Gift Deed Which is Better?

It depends on the situation of the transfer. The most effective way to document the transfer is through a Will or Gift Deed. A Will is used when transferring property after an individual's death, whereas a Gift Deed is used when transferring property while the individual is still alive. 

Here are the differences between them.

I hope this helps you decide which is better will or gift deed.

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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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