Ask AasaanWill: Partitioning HUF Property Before Writing a Will

Dividing HUF property before drafting a Will is necessary; however, it is usually the last thing people think about when they begin to plan their estate. Dividing HUF property, commonly referred to as “partition,” legally separates and allocates the joint family assets among the coparceners (family members) and converts the joint ownership to separate, personal holdings. Once this has occurred, the coparceners have the ability to create Wills independently regarding their respective portion of the HUF property. Therefore, by dividing the HUF property prior to creating a Will, there should be less confusion and fewer disagreements in the event of someone's death.

If a Will is created while the HUF property is still held jointly, then the process of inheriting the property can be quite difficult. The reason for this difficulty is that HUF property is held jointly by the members of the HUF as one unit rather than separately. Therefore, if you are contemplating creating a Will that involves your HUF property, it would be wise to consider the partition of the HUF property first. It is a smart move to keep things as clear as possible for your loved ones.

This approach is in accordance with the Hindu Succession Act, 1956, as it codifies the rights of coparceners with respect to ancestral property. The 2005 amendment of the Act further ensured that daughters were given equal rights as coparceners and therefore provided for equal rights in regard to the inheritance of HUF property.

Real Life Scenario\Example

Mr. Sharma is the Karta of his family’s HUF, consisting of his two sons and a grandson, who oversees ancestral land inherited from their ancestors and held jointly for decades. He intends to write a Will to fairly distribute the land among his heirs, but he cannot do so until the land is divided between him and his family (HUF). Since the land at present belongs to the HUF as a whole (not by any individual members), his Will might subsequently cause certain conflicts concerning ownership.

As an alternative to future controversy and conflicts, Mr. Sharma and his other HUF family members executed a partition deed- a registered legal document formally dividing the ancestral property into separate and specific portions for each family member. Thereafter, each member of the family can then create their own Will specifying inheritance over their designated portion of the ancestral property.

This method honors the authority of the Karta along with the rights of the coparceners, which ensures that the ancestral property is passed over peacefully to the family members without any squabbles and misunderstandings.

The Hindu Succession framework and other property-related laws provide for a number of ways to divide a jointly owned estate, such as through a registered Partition Deed or Family Settlement. A Family Settlement does not have to be registered, while a registered Partition Deed is required to be registered to ensure clarity as well as legal validity with respect to the division of property.

Advice for HUF Families— Why Partitioning Makes a Difference 

Many HUF families miss this point about the Karta; as a Karta has considerable power to manage and, in some cases, alienate joint family property during his/her lifetime, and loses all such authority at his/her death. This means that there must be clarity regarding the rights of each member of the family in regard to the property after the Karta's demise so that they can proceed with the orderly process of succession.

Partition of HUF property can take place through a family settlement as well as through a partition deed that is formally drawn up, signed, and registered by all adult members (coparceners) of the HUF family; this deed provides for allocation of each member's share clearly. As such, this clarity and openness not only simplify the complications related to the inheritance of an HUF property but also provide a means to eliminate numerous potential disputes.

Once the HUF property is partitioned, the property ceases to be jointly owned property and becomes individually owned by all the coparceners of the family. In addition to this, the Supreme Court has made numerous rulings stating that the shares allocated to each coparcener following partition are treated as self-acquired property and give each coparcener the full authority to sell, gift, or otherwise dispose of their respective share(s) without needing the permission or consent from other family members.

The Supreme Court rulings referenced above, as well as the applicable sections of the Hindu Succession Act of 1956, confirm that after partition, the coparceners have total control and authority over their separate shares of the property, independent of the joint family structure.

How AasaanWill Make your HUF Estate Planning simpler?

Are you worried about being overwhelmed when handling so much paperwork? That is where AasaanWill comes into the picture. While it does not act as an attorney, AasaanWill provides an online, trusted, and user-friendly platform to draft legally valid Wills and create your family settlement or partition deed that is fully compliant with the relevant applicable laws and regulations.

While drafting your documents, AasaanWill also offers you thorough step-by-step guidance for entering your information accurately, review of your documents by experts to ensure everything is legally sound, and personalized support to increase the validity of your documents — all without the need to go through multiple complex and exhausting meetings.  AasaanWill makes management of your HUF estate planning — simple, assured, and completely stress-free.

Want to know how simple your HUF Succession Planning could be? Book a consultation or start drafting your Will or Partition Deed with AasaanWill and begin your journey to secure the future of your family today!

Looking to make your HUF Property Succession Planning easy? Connect with AasaanWill and learn how clear and stress-free succession planning brings Peace of Mind for you and your family.

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