A family comparison contract is useful because it is an amicable solution between the parties and does not take as long as a court. Note that the transfer of property from this contract should not be considered a gift nor does it constitute a transfer of rights. Therefore, there can be no question of capital gains tax. The Madras High Court ruled in this regard in the case of the Commissioner of Income Tax vs AL Ramanathan in 1998. If you would like to see a lawyer to discuss a family contract, please contact my office: for the contract to be valid, the family comparison contract must be different from the will of your loved one. The agreement must be based on a will considered valid in Texas. In our previous blog post, we discuss what is considered a valid will in Texas. Family comparison agreements can be entered into in situations where there is a will or no will. If there is a will and the people who participate under the will agree that the distributions should be different, contrary to what the will says, they can enter into a family comparison contract.
Or if there is no will, the rightful heirs may, according to Intestate of Texas` laws, enter into an agreement to distribute the property in a different way than the Intestacy laws require. Although it is not necessary for the parties to the SSA to have a common ancestor or to be legitimate heirs, the colony must be in close relations to be considered a „family agreement“. An FSA does not regulate the transfer of ownership. It is simply an instrument for the transfer of property rights, the transfer of which must be induced by a separately registered deed of transmission. An FSA assigns rights only to signatory family members. To realize their family ownership, they must perform separate instruments proving their intention to transfer the property. Indian law does not provide explicit legal provisions for family comparison agreements. However, the halsburye laws in England defined a family agreement as: „An agreement between members of the same family, which must be general and reasonable for the good of the family, either to violate the law by doing so, or to preserve family law by avoiding litigation or saving their honour. The will and the family contract are legally enforceable documents, provided the legal conditions for their execution are met. A will was defined by the law of Section 2 h of the Indian Succession Act of 1925, to designate the legal declaration of the intent of a deceased or the person making the will to know how he or his property will be treated after his death. A person can only remove a property that he owns or must be disposed of at the time of death.
While a court generally does not fall within the merits of a will, the document could be quashed if it is proven in court that it was made in suspicious circumstances. In the absence of a will, the legal heirs are subject to the personal laws of the faith that the deceased professes. The scheme must be voluntary and should not be caused by fraud, coercion or undue influence. This condition was also given in the 1976 Supreme Court decision. If the corresponding requirements of the law are met, the agreement will be legally applicable under the Indian Estate Act of 1925. Assuming your family contract is not registered, it can still play the role of Estoppel. Estoppel is what prevents a person from arguing something that is at odds with what he or she had previously suggested orally or in writing. However, they must register an agreement if it results in a change in the legal rights of family members. In Tek Bahadur v.
Debi Singh et al., the court had considered the validity of an act of family comparison.