How is self-acquired property divided among the owner’s legal heirs?

The procedure and laws applicable on division of a person’s self-bought property and his ancestral property are different. Considering the proprietorship of a self-acquired property lies exclusively and solely with the owner, unlike joint family properties, he enjoys a great level of freedom in matters of inheritance. To put it simply, the owner decides who inherits his self-acquired property after his death. And, he can exercise this right by using a Will.

What is a self-acquired property?

The following properties fall in the category of an owner’s self-acquired properties:

1. Property bought with his own money
2. Property received as a gift from non-relatives
3. Property received from the government as a grant
4. Property received after the division of joint ancestral properties

Difference between self-acquired and ancestral property

An ancestral property is a common, undivided property in which four generations of a single family have their share. Basically, the father, the grandfather, the great grandfather and the great-great grandfather have inheritance rights over an undivided ancestral property. A person’s right in an ancestral property starts from birth.

On the other hand, when a person buys a property using his private wealth, this acquisition is known as his self-acquired property. The owner has an exclusive right in this property, purchased without any help from family or family members.

Features of self-acquired property 

Sale

As the owner of a self–acquired property, you decide when you want to sell your property. This is not true of an ancestral property, where the consent of each member in the joint family is needed to proceed with the transactions. This is why selling an ancestral property is a lot more difficult than selling a self-acquired property.

Transfer

Unlike an ancestral property, you are free to give your self–acquired property to any one you wish to. In case of ancestral properties, each coparcener will accrue his share in the property by birth, and it is quite hard to deny anybody their right in their ancestral property. The ancestral property will pass on from the father to the son. In case of his self–acquired property, however, the father can transfer the property rights to anyone he wishes to.

Share

As its sole owner, you have an exclusive right over your self-bought property. Your share in an ancestral property is always decreasing with the birth of new members in the family. The same is not true of self–acquired properties. Your ownership in the latter remains constant.

List of documents that prove a property is self-acquired

The following documents clearly mention the name of the owner and would be helpful in proving that the property in question has the sole ownership of the person:

• Sale deed
• Gift deed
• Property tax receipts
• Share certificate
• Home loan documents

What if the owner leaves a Will?

In the state of the owner leaving a Will (known as testamentary inheritance), his self-acquired property will devolve upon the people he names in the document. It does not matter if the intended beneficiary is not his legal heir or not.

What if the owner does not leave a Will?

While self-acquired properties do offer the owner the freedom to give your properties to anyone you like, this right can only be exercised if the owner leaves a Will clearly stating his wish. In the event where the owner fails to leave a valid Will (a state known as intestate in legal parlance), his property will be divided among his legal heirs according to the personal laws of inheritance.

For Hindus, Jains, Sikhs and Buddhists, property among the deceased legal heirs will be divided according to laws prescribed in the Hindu Succession Act. In case of Christians, the Indian succession act of 1925 will come into play. In case of Muslims, the property will be divided according to the Muslim personal Law.

How a Hindu’s self-acquired property divided if he does not leave a Will?

Under the Hindu Succession Act 1956, legal heirs are categorised into two classes— Class-I and Class-II. In case an estate holder dies without leaving a Will, Class-I heirs will have the first right on the wealth. Class-II heirs can claim their rights only if there are no Class-I heirs.

List of Class-I heirs under HSA

• Son
• Daughter
• Widow
• Mother
• Son of a pre-deceased son
• Daughter of a pre-deceased son
• Son of a pre-deceased daughter
• Daughter of a pre-deceased daughter
• Widow of a pre-deceased son
• Son of a pre-deceased son of a pre-deceased son
• Daughter of a pre-deceased son of a pre-deceased son
• Widow of a pre-deceased son of a pre-deceased son
• Son of a pre-deceased daughter of a pre-deceased daughter
• Daughter of a pre-deceased daughter of a pre-deceased daughter
• Daughter of a pre-deceased son of a pre-deceased daughter
• Daughter of a pre-deceased daughter of a pre-deceased son

List of Class-II heirs under HSA

• Father
• Son’s daughter’s son
• Son’s daughter’s daughter
• Brother
• Sister
• Daughter’s son’s son
• Daughter’s son’s daughter
• Daughter’s daughter’s son
• Daughter’s daughter’s daughter
• Brother’s son
• Sister’s son
• Brother’s daughter
• Sister’s daughter.
• Father’s father
• Father’s mother
• Father’s widow
• Brother’s widow
• Father’s brother
• Father’s sister
• Mother’s father
• Mother’s mother
• Mother’s brother
• Mother’s sister

Latest court rulings

Self-acquired property in common pool treated as joint property: Karnataka HC

If a member of a Hindu Undivided Family (HUF) puts their self-acquired property into the common pot, giving up their individual claim, it becomes a joint property, the Karnataka High Court (HC) has ruled.

While dismissing an appeal by one T Narayana Reddy and another, Justice Krishna S Dixit and Justice G Basavaraja, said: “Law relating to blending of separate property with those of joint family is well settled. Such an intention can be inferred by the words and if there are no words, then from his conduct.”

Housewife has equal share in husband’s self-acquired property: Madras HC

Housewives have an equal share in the property purchased by the husband since they contribute to the acquisition through daily chores, the Madras High Court (HC) has ruled. The ruling came as a verdict in the Kannaian Naidu and others versus Kamsala Ammal and others case.

“No law prevents the judges from recognising the contributions made by a wife facilitating her husband to purchase the property. In my view, if the acquisition of assets is made by joint contribution (directly or indirectly) of both the spouses for the welfare of the family, certainly, both are entitled to equal share,” the HC said in the order dated June 21, 2023.

“In generality of marriages, the wife bears and rears children and minds the home. She, thereby, frees her husband for his economic activities. Since it is her performance of her function which enables the husband to perform his, she is in justice, entitled to share in its fruits,” it added.