Is there a tax-friendly method for dividing my mother’s property?

livemint.com:

My father, my sister and I are the sole legal heirs of my mother’s immoveable property situated in Delhi. My father wishes that the said property or realizable value thereof may be shared equally by both the children. What is the suitable, tax-friendly method of achieving this division of property? One simple way could be that my father signs a deed of relinquishment before the mutation of the property. Is there any other alternative method that will be tax efficient and would not entail payment of stamp duty or any other levies?

—Name withheld on request

As per your query, we infer that your mother had acquired the immovable property in Delhi and such property was not inherited by her from any of her parents. We assume that your mother was a Hindu and that she died intestate, i.e. without leaving a will. Under such circumstances, the Hindu Succession Act, 1956, lays down provisions for the division of property of a Hindu female dying intestate.

As per the Act, your mother’s property devolves upon all three of you equally as her class I legal heirs.

Typically, in such cases, the individual holding the one-third share may consider executing a release deed relinquishing his/her share in the property in favour of other heirs having some share in the same property. Another tax efficient method if the intention is to mitigate the impact of the stamp duty or other levies could be your father bequeathing his one-third share in the property in his will.

I am a 70-year-old retired service personnel living with my wife and two children (a daughter and a son). I have prepared a will on a ₹10 stamp paper and got it attested by a notary. Is this will acceptable as a legal document or should I get it registered.

—Ajay Kumar Gupta