My answers are as follows:
1. There is suggestion of Family settlement deed and partition deed. Could you please help me understand the basic difference between these on following points.
Ans: Given at the end.
2. Validity and effectiveness of both the deeds, which one is better, pros and cons of each. To avoid future clashes if any.
Ans: Given at the end
3. What are charges need to be paid for each in Maharashtra (stamp duty, registration charges, or any other charges.)
Ans: You may check with the concerned Registering Office because we cannot believe government websites for accuracy.
4. Is it possible to execute both the deeds considering one of the member is minor.
Ans Not necessary. Natural guardian of the Minor will represent.
5. Is it necessary to execute release deed after one of above deed?
ANS: NOT NECESSARY.
6. Once above deed is complete, what is the procedure to get the properties transferred on respective heir’s name and what are the charges.
ANS: JUST PRODUCE THE CERTIFIED COPIES AND FILL THE UP THE CONCERNED FORMS.
DIFFERENCE BETWEEN PARTITION DEED AND FAMILY SETTLEMENT
A settlement deed is a non-testamentary disposition, in writing, of movable, or immovable property made -
a) in consideration of marriage,
b) for the purpose of distributing properties of Settler among his family or those for whom he desires to provide for, or for the purpose of providing for some person dependent on him, or
c) for any religious or charitable purposes;
Settlement also includes an agreement in writing to make such a disposition or where a disposition is not made in writing, any instrument recording, whether by way of a declaration of a trust or otherwise, the terms of any such disposition. The Karnataka Stamp Act has similarly defined settlement.
The essential ingredients are:
(1) It is a non-testamentary disposition, that is it is not a Will, as such it operates immediately on execution, where as a Will comes into operation only after the death of its author. However, a settlement may also contain a clause for reservation of life estate.
(2) The Act specifies it must be in writing; so an oral disposition is not a settlement
(3) There may be an agreement to make such a disposition
(4) If it is not in writing, any record, providing evidence for such disposition, is also a settlement
(5) There must be a settler i.e. the owner of a movable or an immovable property.
(6) There must be people that is family members or other persons who are dependent on the settler in whose favour the property is to be settled. It may be for religious or charitable purposes.
Partition v/s settlement
Usually partition of joint properties is mistaken for settlement. However, partition constitutes division of properties between the joint owners as well as the division of joint interest ownership in the property. Thus, the division amounts to severance of the joint interest in the ownership of the common properties and the common property is thus divided among them.
Each partner becomes the absolute owner of his share and each partner’s share is subject to a pre-determined percentage, governed by either the inheritance laws or by the partnership deed as the case may be.
In settlement, however, the property is owned by a third person and his settled in favour person’s who do not have any previous interest in the said property and the share of the beneficiary is as per the wishes of the settler.