Hello, My grand father purchased with his money agricultural land in Karnataka. He passes away. He has 6 children including my dad. 5 siblings of my father are releasing agricultural land to my father through release deeds. Each of the 5 siblings will receive a nominal payment of x lakhs and this will be mentioned in the release deed. 1. Should all the bank Cheques towards the nominal payment (x lakhs to each sibling) come from my dad only? Can my mom or my dad’s children write cheques? 2. Can my mom transfer money from her account to my fathers account and then my dad write cheques? 3. Can I transfer money to my fathers account and then he write cheques? Thank you.
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1. No necessarily. Yes mom and children may issue cheques.
2. It is not necessary that the consideration for relinquishment must be paid exclusively by your father.
2. Yes! In the alternative, she may issue the cheques directly.
3. Yes! In the alternative, you may issue the cheques directly.
Did You Mention consideration Amount in Release deed?
in case, if you have mentioned the amount then you should pay it through your account.
1) all cheque’s should be issued by your father only
2) your mother can transfer funds to your father account and father can issue the cheque
3) you can transfer funds to your father account
Hello,
1) It would be most ideal that the payment to the releasing siblings be paid by your father from his own account so that in case of any dispute by any of the parties or their heirs it can be proved that the Release was consequent to a consideration in the form of compensation your father paid.
2) Both you and your mothe may transfer funds into your father's account and he he can issue cheques for payment.
3) Ensure that the Release Deed is duly stamped and registered with the Registrar of Assurances.
1. No it should come from your dad only.
2. Yes this can be done
3. this also can be done
Just make sure that your dad makes the payment so that there is no hurdle later.
Regards
1. One thing you shall have to keep in mind that if payment of consideratioin is shown in the said settlement deed, then it will be considered as a sale deed by the Registrar and higher amountb of stamp duty will be charged by him. So, it will not be prudent on the part of your father to mention anything about the amount paid to his siblings fo0r their releasing their share of the inherited property in favour of your father. However, in case of sale deed, there shall have to be flow of consideration from both sides i.e. share of land from their side and money from your father's side. The cheques shall have to be issued by your faher only and not by any of his family members.
2. & 3. You and your mother should transfer/remit money to your father's account for his issueing cheque to his siblings to make the sale legally valid.
1. it will be better if all the cheques are drawn by your dad only.
2. because he will be named the 'releasee' in the release deeds
3. if the payment is made by his family members but in the deed he is made the releasee, then such a transaction will come under the purview of a benami transaction which is prohibited under the Benami Transaction Act
4. what can be done is you and your mom can transfer money to your dad's account
5. all of you will show the above amount as 'gift' in your books of account
6. your dad can then use this money to pay his siblings under the release deeds
Dear Client,
On behalf of father, any family member can make the payment.
2nd & 3rd thing also permitted.
All three options permitted,no bar.
1. It would be better if the cheque is written by dad in his name if you or your mom want to pay first gift same to father as gift is not taxable from same he can make payments.
2. Yes she can transfer as gift to father.
3. Yes,
Dear Sir,
Be informed that normally no issues will arrives in such family matters. However as a precautionary measure it is better to your father to transfer the amount from his own account to the accounts of his 5 siblings. Further to be more safe your father must create a documents which supports him that he received such amounts from his wife or relatives into his accounts by way loan or otherwise.
Ideally, the consideration amount paid your uncles for relinquishing their shares in the property should be paid from your father's bank account so that if any dispute arises in future, he would have no hard time proving that the funds were transferred from his account only towards consideration for executing the release date.
You or your mother can transfer money to your father's account, who can in turn write checks in favours of your uncles.
Hi, it is not necessary .. Once the release deed is made and the consideration amount is realised by the executors , it cannot be challenged in future
1. There is no legal infirmity in you or your mother supporting your father financially for this purpose.
Make sure that this is reflected in your respective income tax returns.
2. She can very well do that.
3. There is no legal impediment in this arrangement.
You both can state that you have gifted this amount to your father.
1) Yes, you and your mom can transfer money to your father's account for further distribution of cheques.
