One can acquire (or) own a real estate property through different ways. You can invest your hard-earned money and buy a property (or) you can acquire a property through a Will (or) you may get it through inheritance also.
We also often hear people saying that we own an ‘Ancestral Property’. What is the difference between a self-acquired property and an ancestral property?
When can we call a property as an Ancestral property?
An ancestral property is a property acquired by your great grandfather (Hindu) which has been passed down from generation to generation (your grandfather and father) up to the present generation (you) without being divided or partitioned by your family.
So, it has to primarily meet two conditions for the property to qualify as your ancestral property;
- The property should be four generations old &
- It should not have been divided or partitioned by the previous three generations.
Then, what is a Self-acquired property?
Self acquired property is the one that you have purchased/ acquired from your own income / resources. It also includes property obtained or inherited as a legal heir or by Will or through a Gift deed.
You get a share (inherit) in your ancestral property by birth. In case of self-acquired property, you can inherit only on the death of the owner of the property. If your father owns a self-acquired property and also an ancestral property, he has the right to exclude you (son/daughter) from inheriting his self-acquired property. However, he can’t deny your share in the ancestral property.
If you would like to sell, dispose, or partition a property, are the rules for these two different kinds of properties same? What about the rules concerning inheritance / succession related to ancestral property based on your religion?
Concepts Ancestral Property & Hindu law
Below are some of the important points on Ancestral property;
- As discussed above, the property should have been acquired by your great grand-father and no partition has been done.
- It should not have been divided by the members of a joint Hindu family as once a division of the property takes place, the share or portion which each member (Coparcener) gets after the division becomes his or her self acquired property.
- The right to a share in the ancestral property comes by birth.
- The share of each generation is first determined and the successive generations in turn has to sub-divide what has been inherited by their respective predecessor.
- Kindly note that if a property has been inherited from your mother / grand mother / uncle or even your brother, such property is not considered as an ancestral property.
How hindu ancestral property will be divided among his successors?
Partition can be made by mere declaration to separate, Partition by Notice, Conversion to Another Faith, under Marriage Act, Partition by Agreement, Partition by Arbitration, Partition by Father, and Partition by Suits.
When a division / partition takes place between brothers after partition they will take equal shares in the property. If there are 3 brothers then each one will take 1/3 rd share in the property.
Can daughters inherit Hindu ancestral property?
Yes, under Hindu Succession (Amendment) Act 2005 even daughter(s) are entitled to a share in the property along with their male siblings. At present, a daughter has the same rights in the property of her father on par with a son.
But, kindly note that Daughters cannot inherit ancestral property if father has died before 2005. Therefore, if a person (father) had passed away before 2005, the daughter cannot claim an equal share in the property. She is however entitled to a certain amount of maintenance if she is unmarried.
Can I (head of family) sell the ancestral property without the consent of other family members?
No – You need to get the consent of other members of the family to divide or sell the property.
Can I consider a property gifted by my father as an ancestral property?
No – Property gifted by a father to his son could not become ancestral property in the hands of the son simply by reason of the fact that he got it from his father. It remains as a self-acquired property for you. If this property remains undivided for next four generations, even then it will not be considered as an ancestral property.
Can I include my share in ancestral property in my WILL?
I believe that ancestral properties can not be WILLed selectively, ignoring few legal heirs, as each one of your legal heir has the right to get a share in the property.
Are the above rules applicable for a self-acquired property too?
As far as your self acquired property is concerned, you are free to dispose of it in any manner you like.
Can illegitimate children inherit ancestral property?
They can only acquire a share in self-acquired property and not in the ancestral property.
Concepts of Ancestral property & other Religions
Muslim Law
Under Muslim Law, there is no concept of Ancestral property (or) right of inheritance by birth. A person can leave behind a WILL on any type of property. The legal heir can inherit any type of property only on death of the owner of the property.
Christianity
The succession rules amongst the Indian Christians is governed by the Indian Succession Act, 1925. There is no concept of ancestral property under the Indian Succession Act. All types of properties owned by an Indian Christian can be willed away by him/her by executing a Will.
Conclusion :
It is very clear that law treats both types of properties (ancestral & self-acquired) very differently. So, it is very important that you identify a property as either self-acquired or ancestral one, so that you can plan division of your Estate to your legal heirs.
In case, you are a legal heir, identifying the type of property can help you claim a rightful share in your family’s ancestral property.
Continue reading other related articles :
- 5 ways of transferring your Real Estate Property
- Nominee Vs Legal Heir : Who will inherit your Assets?
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net & Facebook / Social Media Image courtesy : Homeonline.com) (Post first published on : 12-April-2017)
REITs – Soon, you can own a slice of a property for Rs 2 Lakh
Lost your Property Documents? How to apply for Certified Copy of lost Sale Deed?
Reselling Property within 3 years of buying? – Watch out for charges & Tax liability
Reverse Mortgage (Home Loan)
Hello Sreekanth,
I read this very useful blog and found very informative. I have following query. Hope you can answer this query.
My father owns a house which is ancestral property and on paper it’s not transferred to my father’s name.
Can my aunt(my father’s step sister) asks for her share in this house? What about my aunt ‘s children? Can they claim their in this property?
Also, if my father wants to register our house on my father’s name then do we need to ask my aunt?
Thanks in advance for your kind help.
Great job. Keep it up.
Dear DMS,
All legal heirs can have right of ownership share in an ancestral property.
Yes, your father may have to ask your aunt and get the consent.
Hi Sreekanth,
We have an ancestral property, my father in laws father did not write any will. So in between my father in law and his sisters settlement happened in such a way that his sister’s are not going to ask any share. So now, my father in law has transferred all the property to his name. So now, will my husband and his brother have equal share on this or its my father in laws wish on how to distribute the property.
Please suggest.
Thanks,
Preeti.
Dear preethi,
Your husband and his brother will have share in the property as it is an ancestral property.
Regarding the settlement between your Father-in-law and his sisters, was it a formal one? (any document has been registered on this??)
Thanks Sreekanth. Yes there was a legal document stating by my father in laws sister, saying that she does not want any share on the property.
For the question on the property divison between my husband and brother in law, so you are saying that my father in law do not have right to distribute the property?
Dear preethi,
He has the right only on his share in the property along with his Sons and that too he can sell his share only after getting consent from them.
Thanks sir very useful article sir mere dadaji ko unke uncle jo beaulad the US se Jamin mili thi will ya gift se nahi balki Hindu act varasai ke niyam se dadaji abhi jinda He to ye jamin ancestral property kahi ja shakti he?
Dear Sachin ..If possible, can you kindly post the above query in English.
My grandfather did not have any offspring in his uncle’s land, after his death, after his death, Dada was given a farm by inheritance, and is this property as an cestral property?
Dear Michael ..Apologies, I am unable to understand your query. You may take advice from a local civil lawyer / Chartered accountant.
Is there any difference between ancestral property and HUF property? Please elaborate.
Dear Sweta,
Kindly go through this article, can be useful ...click here..
Hello Srikanth,
Your articles are very informative.
I have 2 questions,
My Father-in-law wants to gift a plot in my name. What are the options/Procedures available to transfer the property in my name ? Tax Implication (My income falls in 20% tax bracket)? It is a self acquired property by my Father in law and not a ancestor property.
thanks a lot in advance.
Regards
Mahesh prasad
Dear Mahesh,
The gift will be tax-exempt one. He can execute it through a Gift Deed.
Kindly read:
Gift & tax implications!
5 ways of transferring real estate property.
Thanks for the article Srikanth, one question,
A land property on my fathers name. He passed away last year. And I am only son.
How can I treat this property, if I want to sell or if I want to built a house in it?
Please advise
Dear Subhash ..Your mother and you will have equal share/right in the property.
You can get the mutation done in your name/in joint name.
Thank you Sreekanth