Two methods exist to give your full or half assets to support someone. You can enjoy the assets when you are alive and make a will that proceeds after your death; the second method is giving a gift to someone. Both methods have advantages and disadvantages.
Giving it away by making a gift
If you want the recipient to benefit from the item immediately, making a gift is the best option, but you will lose possession of the asset for good. A person can give away his self-acquired possessions in whatever way he sees fit, including to strangers. A Hindu, on the other hand, cannot donate his half of the Hindu Undivided Family assets. However, he can leave them to anybody, including an outsider.
A moveable asset can be gifted simply by delivery. Still, an immovable property requires the execution of a gift deed and the payment of stamp duty on the property's market value. Some states, such as Maharashtra, assess a modest stamp fee on presents exchanged between blood relatives. A gift is not considered final until the intended recipient accepts it.
If the person to whom you wish to make a gift is not included in the categories of specified relatives and the total value of gifts received by such person from all sources during the year exceeds Rs. 50,000, the total value of all gifts becomes the recipient's income, with no threshold exemption. Please remember that while such donations have tax consequences for the receiver, they do not have tax implications for the donor.
Leaving a Bequest in a Will
After a person dies, his assets are distributed in two ways. In the absence of a will, all assets possessed by a person at the time of his death shall be distributed to his relatives by the terms of succession laws applicable to the dead if the dead leaves a Will, the assets bequeathed in the Will are inherited by the person/s indicated in the Will. If the Will does not cover all of the assets, the deceased's lawful heirs inherit the assets according to succession law.
According to Hindu succession law, a person can bequeath all of his assets to any individual or group without excluding his legal heirs, as opposed to Sharia law, which prohibits Muslims from bequeathing more than one-third of their assets in a Will.
Which Method is better for you? There are a few points to consider when choosing the appropriate way to transfer your assets. For example, if your wish is only to ensure that assets you own pass on to persons of your choice only after your death and you want to enjoy and have control over those assets during your lifetime, it is best to bequeath your assets through a Will.
It is also advisable to make a Will to ensure that your assets are transferred smoothly to your legal heirs even after your death. The right way to do it is to make a Will if you want your assets to go to people who aren't your legal heirs or if you want your legal heirs to inherit your assets in a different ratio than prescribed by personal law.
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