Skip to content

NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tools for Estate Planning

Caselet: Mr. Khan wants to give his wife Rs 5 lakh in cash during his lifetime to buy jewellery, with no strings attached, and wants the transfer to be legally effective. Which statement about a gift under Indian law is correct?

A valid gift is a voluntary transfer of existing property made without consideration and accepted by the donee during the donor's lifetime. Movable property such as cash can pass by delivery, while immovable property gifts need registration. A post-death transfer is a will.

  1. AA gift requires consideration equal to the market value of the property
  2. BA valid gift needs a voluntary transfer without consideration, accepted by the donee during the donor's lifetimeCorrect
  3. CA gift becomes effective only after the donor's death
  4. DA gift of movable property always needs registration

Explanation

A gift is a voluntary transfer of existing property without consideration, which the donee must accept while the donor is alive. Movable property can pass by delivery, so registration is not always required; immovable property gifts need registration. A transfer effective after death is a will, not a gift.

Did you get it right without looking?

One question tells you little. A timed set on Tools for Estate Planning shows your real accuracy, how long you take and where you lose marks.

Practise Tools for Estate PlanningFree diagnostic mock

More Tools for Estate Planning questions