My uncle wishes to transfer ownership of his apartment valued at ₹80 lakh, located in a co-operative housing society, to his daughter. However, the society secretary says that a gift deed must be executed between the two. Is this the only way this transfer can be carried out?

Thanks for raising this very pertinent issue, one that affects a large number of families. Wealth transmission is a subject that unfortunately hasn’t received its due attention in the public discourse. On the demise of a primary breadwinner, family members and dependants are often made to run from pillar to post to access a loved one’s lifetime earnings.

The transmission of real estate—particularly residential apartments—is frequently overlooked, even though it can create significant legal and financial challenges if not planned properly.

Your uncle has multiple ways to transfer ownership of the apartment to his daughter. A gift is the simplest and most commonly used route, but it is not the only one—and it comes with certain considerations.

A gift allows the property to be transferred seamlessly during your uncle’s lifetime. Since a father qualifies as a “relative” under the Income Tax Act, there is no tax incidence at the time of making the gift. However, a tax liability would arise if and when the daughter chooses to sell the property in the future.

Gift vs will

When compared with transferring ownership through a will, each route has distinct advantages and disadvantages.

Convenience

A gift deed avoids cumbersome paperwork, procedural delays and title movement after death. Since the transfer happens during your uncle’s lifetime, it is generally easier to execute and reduces the risk of disputes or delays that may arise in posthumous inheritance.

Personal security

Because ownership shifts immediately to the daughter, this is a sensitive personal decision. It is advisable for the owner to retain sufficient assets—both financial and immovable—in their own name to ensure long-term financial security while planning succession.

There are alternative mechanisms such as private family trusts, which some large families use for estate planning. However, these structures are typically suitable only for larger asset bases and may not be practical for a single residential apartment.

The takeaway

To summarize, a gift deed works best when all parties are comfortable with the immediate transfer of ownership during the owner’s lifetime. A will may be more appropriate if there are personal concerns or if the owner wishes to retain full control of the property until death.

If a will is chosen, a properly drafted and registered will can significantly ease the transmission process, helping heirs avoid disputes and procedural hurdles later.

Vivek Banka is founder of GoalTeller, a Sebi-registered financial planning app.