Inheritance of property: Know the process
The most cumbersome is the process of inheriting immovable property.
The loss of a parent or a loved elder is a painful incident in our lives. But along with it comes the complications of inheritance,of which,the most cumbersome is the process of inheriting immovable property. Where a clear will is absent issues regarding actual ownership and rights lead to conflict among brothers and sisters.
Even when a clear will exists,several legal issues could crop up. It is in such circumstances that a good understanding of the rules and regulations governing inheritance of properties comes in handy,especially if one is likely to face the challenge of placating multiple claimants.
First Things First
Before making a claim to any property left by the deceased,one needs to make sure that there are no debts outstanding,in which case they would need to be cleared before any division of the property can be thought of. All the heirs would have to first agree to chalk out a strategy to clear the debt.
In case there is ambiguity in the will,and it does not match accurately with the total existing assets mentioned in it,legal advice must be sought while arriving at any kind of settlement. Lack of clarity in the will can lead to serious legal complications at a later stage,which can be avoided by working in the right direction in the beginning itself.
Starting the Legal Process
The very first step in the right direction is to get hold of the testators will. This can be obtained by applying along with the deceaseds death certificate to the district registrar.
The registrar will open the sealed will in front of all the heirs and then hand over a copy to each applicant. In case the deceased has nominated only a single heir then only one copy would be provided. In case there is no will then as per the Hindu Succession Act the property will pass on to Class 1 heirs who include spouse,children and mother of the deceased. In case of absence of Class 1 heirs,it would pass on to the Class 2 heirs comprising of father,grandchildren and siblings.
If the deceased was a woman then the property is equally divided among the husband and children in case the woman has died intestate without a proper will. In case of the heir being a minor or disabled,the property is transferred through a trust at a suitable point in future.
Once the legal ownership of the property for that heir is confirmed,the next logical step is to apply for mutation of the house to local municipal authority.
It is essential to know that mutation only helps in updating the records of the government and in no way confirms ownership. However it is an essential step in cementing your ownership on the house.
In order to apply for the mutation one needs to deposit all the relevant legal papers of the house,proof of inheritance through the will,death certificate of the deceased and land records of the said property.
A no-objection certificate from the other heirs is also required in case of multiple heirs. Any challenge to this application for mutation will be referred to the sub divisional magistrate. However,the appeal for dispute must be within 30 days of the mutation order. In case of multiple legal heirs to the property the mutation document would bear the names of all the heirs.
Once these legal formalities are over then the heir is at liberty to either reside in it or rent it out. He can even sell off the property as he is the sole owner of the house. In case of multiple heirs to the house,it is advisable to mark the division of property among them right at the time of mutation to avoid subsequent complications.
Thankfully,till date there is no inheritance tax in our country and one does not need to pay any additional charges for a house inherited.
However once the house is legally yours you may have to pay wealth tax in case the net worth of all your properties exceeds Rs 30 lakh. An inherited house can greatly boost your total asset value or come as a saviour in difficult times. Knowing the right provisions that are applicable will help you to get what is rightfully yours without any legal delays or hassles.
The author is CEO,BankBazaar.com
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