Ask AasaanWill: Can I Write a Will for My HUF Property?

Wondering if you can write a Will for your Hindu Undivided Family (HUF) property? Here’s the scoop: You actually cannot. The HUF Property is an asset of the Joint Family that is jointly owned by all the coparceners as per the Hindu Law, and it is mainly governed by the Hindu Succession Act, 1956 (amended). Unlike your personal assets, the Karta or any other one member cannot Will away jointly held HUF Properties. Instead, the proper way of managing or transferring HUF assets requires legal partition or settlement deeds—formal documents that divide property shares among family members, in line with provisions of the Hindu Succession Act, 1956. 

But don’t worry—individual coparceners can still write Wills for their self-acquired assets, as per the Indian Succession Act, 1925. Many HUF families often miss this distinction during estate planning.

A Real-Life Scenario

Meet Mr. Gupta, HUF Karta of his family. His family owns several HUF properties, like ancestral land and commercial properties, and Mr. Gupta would like to leave these HUF properties fairly to his sons. However, Mr. Gupta finds out that writing a Will for HUF property cannot be done because all coparceners hold equal rights to the property according to the Hindu Succession Act, 1956.

And thus the Gupta family executed a partition deed which officially separates property among all coparceners, with each receiving an equal share. Mr. Gupta separately makes a Will in respect of his own savings and investments, which are his own self-acquired property, and which are regulated by the Indian Succession Act, 1925. This is one reason why family estate planning can accommodate both HUF laws and individual rights. This illustrates how family estate planning can accommodate both HUF laws and individual rights.

Knowledge on Karta Powers and The Rights of a Coparcener

The Karta has the power to manage the HUF property and take decisions relating to the sale or gifting of HUF property where it is legally necessary (a principle which has been reaffirmed by several Supreme Court decisions, including the recent Dastagirsab v. Sharanappa case). The Karta also has the power to alienate HUF property for valid family expenses and needs (according to judicial interpretation and Hindu customary laws).

However, these powers do not override the rights of coparceners. Thanks to the Hindu Succession (Amendment) Act, 2005, daughters have been granted equal coparcenary rights, making them full members, entitled to their share in the HUF property. Each coparcener (regardless of gender) has an equal interest in HUF property and can demand partition of HUF property under section 6 of the Hindu Succession Act, 1956.

For this reason, HUF succession should properly be handled by a family settlement deed or a partition deed instead of a Will, as both methods provide for a clear definition of ownership and help avoid disputes between family members.

Managing Estate Planning for NRIs with HUF and Foreign Assets

NRIs have specific estate planning issues to consider because their HUF property in India and foreign assets each fall under different legal systems. HUF properties are governed by the Hindu Succession Act, 1956, whereas foreign assets are regulated by the laws of the country where assets are located and Indian Regulations under the Foreign Exchange Management Act, 1999 (FEMA).

Therefore, to comply with both sets of laws, many NRIs use a combination of trusts and/or dual Wills as part of their estate planning. NRIs can create separate Wills for their own self-acquired foreign as well as Indian assets. NRIs may be able to use dual Wills, one that addresses assets in India including their share of the HUF property, and one that addresses foreign assets, to help prevent potential legal disputes between the two Wills, assist in a smoother transfer of their assets at their time of death, and comply with FEMA regulations and cross-border tax laws.

Pro Tip

Would you like to prevent potential future family conflicts and protect the unity of your family? To properly close out the issues related to your HUF property, you need to draft a proper and formal settlement or partition agreement/deed that has been signed by each coparcener, to give effect to the partition rights recognized under the Hindu Succession Act, 1956. Additionally, to complete your estate planning, you should draft an individual Will for your self-acquired assets. At AasaanWill, you may create your own individual Wills and receive professional support with drafting a family settlement deed, using simple, plain, and easy-to-understand language instead of complicated and confusing legal jargon.

Are you confident about the key differences between HUF property and individual assets when making an estate plan? Are you familiar with the proper legal procedures for dividing your jointly held family property?

Ready to take control of your family’s future and simplify your estate planning? Whether you want to draft a clear Will for your self-acquired assets or formalize your HUF property division with a settlement or partition deed, AasaanWill makes it effortless. Book a consultation with AasaanWill today or create your Will/ Settlement Deed with them. With AasaanWill’s trusted, affordable, and user-friendly platform, securing your legacy is just a few clicks away—because protecting what matters should never be complicated.

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