Many modes are used by civilians in India when it comes to transferring their property from one person to another. There are times when a person might think of gifting property to an individual or an organisation, it is a manner of transfer of property that decides whether the property has been transferred through will or trust or is a gift. People these days get very confused in between what mode has been adopted for the transfer of property hence it is very important for all the legal aid camps and any lawyer that you are hiring to tell you what mode will be the best suitable model for you and what will be the implications of choosing this.
Will versus Trust
This is one of the most common areas of confusion where people find themselves in in dilemma if the transfer they have made it through will or trust.
Will can be defined as a legal declaration where a person or a document is registered and it comes into action only after the death of the owner or the person who frames the will. This is regarded as a unilateral contract and is purely based on contingency. One is expected to make all informed decisions in this regard be it wealth property or any sort of asset which needs to be segregated on the death of a person. There has been no specific format that has been declared for writing a will. It can be typewritten or handwritten Keeping in mind the needs and availability of the person who is framing the will.
Whenever a property is transferred through plus official relationship is created where one party handles all the assistant benefits for the third party and you become the beneficiary of it. It can be created for a variety of functions but testimony trust and living trust are the two men broad categories under transfer of property through a system of trust.
Different types of Will?
According to the Indian succession act wills can be divided into two parts which are as follows:
• Privilege Will
This is a well mainly created by soldiers who were employed during wars and calamities. There are not many legal formalities involved in this kind of will it’s just the Portal or written expression, which is enough for creating such kind of Legal bond.
• Unprivileged Will
These are general types of which are created by civilians. There are a lot of formalities involved along with verification of signatures and attestation of witnesses.
Major differences between Will and Trust
- Wherever there’s a declaration in regards to management or the distribution of testator assets on the demise is considered as will. On the other hand, justice is considered as a legal arrangement where a person authorises a third party to hold the assets on behalf of them as trustee and look after all the management and agreed issues.
- Will as a document contains all the details related to future performance and details regarding how property needs to be transferred. Whereas in the case of trust deed is framed for the main purpose of execution.
- Under the will, all the assets of the testator are covered. Whereas in the case of trust only the part of the asset that is mentioned in the trust is executed.
- Will becomes active only after the demise of the testator whereas in the case of trust it becomes active as soon as the transferred property is done and the deed is executed.
- In matters related to revocation, a will can be revoked anytime during the lifetime of the testator. In the case of trust it depends on the type of trust you have prepared, if it is a revocable trust then it can be revoked anytime whereas if it is irrevocable trust then it cannot be, once it comes into effect.
- A will is considered a public document once the testator has passed away. Just on the other hand is considered as a private document and stays in between the parties.
Whenever issues raised to will versus trust are encountered they are easily solved by a jurist or legal counsel who have all the knowledge and information in this particular area. We might have seen that the legality of trust might not be challenged in front of a court whereas a bill can be so does it mean will holds An upper hand over trust? It is all about perceptions and the need for time. If transit full property needs to be made from one person to another on the demise of an individual then they will resort to will. On the other hand, if they do not want any rules of inheritance to be implicated in their transfer and only a part of their property needs to be transferred to the trustee can look after it, the procedure of trust is adopted.