While property owners are free to gift their property to anyone they like, the same is not true for ancestral property. In the case of an undivided ancestral property, the ownership is shared and the coparceners are not free to gift their share. Even after division, the inheritance does not become a person’s self-acquired property and three generations after the inherited property owner get a claim in his share under the Hindu law. The Supreme Court has recently said the Karta is free
However, the manager or karta of a Hindu Undivided Family (HUF) has the power to gift an ancestral property under the following conditions:
- Legal necessity
- For the benefit of the estate
- With the consent of the coparceners of the property
The Supreme Court (SC) recently ruled that the karta is free to gift property for pious purposes of charity and religious acts. However, the act of charity does not cover gifting property ‘out of love’, the apex court ruled.
‘A Hindu father or any other managing member of a HUF has the power to make a gift of the ancestral property only for a pious purpose, that is, for charitable and/or religious purposes. Therefore, a gift deed, concerning the ancestral property, executed out of love and affection does not come within the scope of the term pious purpose’, a bench of Justices S Abdul Nazeer and Krishna Murari said in an order in April 2022.
See also: 15+facts about ancestral property in India
FAQs
What is a Hindu Undivided Family?
A Hindu Undivided Family is a family consisting of lineal descendants from a common ancestor. It includes wives and unmarried daughters.
Who is a Karta in a Hindu Undivided Family?
The Karta is the senior most male member of a Hindu family who acts as its guardian and custodian. The liability to manage the family affairs and keep its book in order lies with the karta. The position of the karta in a HUF is acquired and governed by seniority.
Can an ancestral property be gifted?
Yes, the ancestral property can be gifted if certain circumstances are met.
What are the circumstances in which ancestral property can be gifted by the karta or the seniormost member of an undivided family?
According to the Supreme Court, the Karta of a HUF can gift an ancestral property in the following circumstances: Legal necessity | For the benefit of the estate | With the consent of the coparceners | For pious purposes
