Summary of this article
Inherited properties often trigger legal and family disputes.
Ownership structure determines heirs’ rights and transferability.
Clear wills and legal planning prevent costly court battles.
Inheriting a property is a common practice in India, but it can feel tedious when multiple heirs are involved. It becomes a source of confusion and legal disputes. The difference in expectations, unclear wills, and misunderstanding of ownership rights can turn family relations into courtroom meetings and long legal disputes.
Understanding the legal framework around the property that is inherited is the best way to avoid the loopholes of the system.
When a property is given to multiple heirs, the form of ownership holds the deciding power. Joint ownership and Tenants in Common are two clauses that can greatly affect the inheritance. People occupying space in the property without any ownership are considered tenants, even if they are the offspring of the owner. “The offspring own it as tenants in common. Each heir holds a distinct, transferable share which can be sold, mortgaged, or passed to their own heirs. It requires a partition suit to legally divide or the sale, if co-owners cannot agree,” says Yamini Pant, Advocate, District and Sessions court, Delhi.
What Provisions Are Available Under Tenants In Common
Each heir owns a defined share, which may or may not be equal. The owner under this provision can sell or transfer their share independently. If and when owner A dies, their share passes onto their heir or the person as stated by their will, not to the other co-owners.
What Provisions Are Available Under Joint Tenancy
Joint tenancy, on the other hand, includes a right of survivorship. If one joint owner dies, their share automatically transfers to the surviving owners. One owner can not pass on their share to someone else in the will.
As for the future interest of the property, tenancy in common is far more convenient as it allows the interests of the deceased to be considered later on. However, many heirs assume that joint ownership means equal rights and easy decision-making when in reality, tenants in common can act to provide them independent ownership.
Difference of Interest In The Future Of The Property
One of the most common occurrences that leads to disputes is when one heir wishes to hold it while the other wants to sell it. If any heir wishes to sell the property while the other wants to hold it, they must come to a common consensus; otherwise, the matters are dealt with under the court's supervision. “All parties must give their consent if one heir wants to sell his/her portion. In this situation, one heir purchases the others' share of property or a partition order from the concerned court,” adds Yamini. Buying a part of the property is rarely attractive to the buyers, so the latter option is often not resorted to. Heirs can, however, opt for a partition lawsuit. Under this, the heirs are themselves asking the court to divide the property or order the property to be sold and divided among the owners.
In most cases, courts favor a sale over physical division. This means that even if one heir wants to keep their family home, the chances of it being overlooked loom over. Physical partition is expensive, time-consuming, and often permanently damaging.
What Happens If The Will Is Unclear
If a will is unclear, a probate court will try to interpret what the deceased’s intent was. This can involve examining the wording of the will and the surrounding circumstances. Even after interpretation, the heirs usually have competing interpretations that further lead to disputes.
If the will remains unclear or wasn’t made, the courts may pass the property as per their succession laws. The division will follow a statutory formula, set and recognised by the state laws.
Can A Will Be Challenged?
A will can be challenged before the court, but only on some specific legal grounds. Such as a lack of testamentary capacity, where it is believed that the deceased was not in a state to make the judgment. Undue influence is secondary, where it is believed that some external pressure caused the deceased to change the will. Forgery or improper execution are also some grounds where this can be changed.
Though this follows a very strict timeline, the burden to gather the proof lies with the challenger. Courts are bound to believe that the registered will is valid, so challenging them is a long process that is difficult and expensive as well. “A will can be challenged in the court of law by the heirs, if there are doubts about its validity within 3 years,” adds Yamini.
Is Inherited Property Taxed?
Taxes are another major aspect of inherited property; inheritance and estate taxes were abolished in 1985, under the Estate Duty Act. “There is no concept of inheritance or estate tax in India. In case heirs sell the inherited property, then they pay a capital gain tax,” adds Yamini. The only tax that can be applicable is the capital gains tax, if and when the heirs decide to sell the property in the future. Failing ot plan properly for the capital gains tax can turn into a major financial burden.
Disputes in inherited property are about money, grief, attachment, and family dynamics. These factors make property inheritance a messy task, even for the courts and administrative authorities. One must know their rights and obligations early to help them make informed decisions. This way, they can save their relationships way earlier.
