One of the most common questions parents ask is: "Should I transfer land to my children now, so there won't be problems later?" The answer is yes, and in many cases it is a good option. But you must first understand that giving property during your lifetime and making a will are not paths that differ only in timing, but differ in almost every legal aspect.
Two Options: How Do They Differ?
| Gift (transfer now) | Will | |
|---|---|---|
| Ownership | Transferred immediately upon registration | Still belongs to the testator until death |
| Changing your mind later | Very difficult | Can be amended or remade at any time |
| Procedures after death | None, because it is already done | Heirs must enter estate administration |
| Creditors of the recipient | Can enforce against that asset | Not yet involved until it passes |
| Can the giver still use it? | Must agree and separately register the right | Can use it normally until the final moment |
A Gift Must Be Registered to Be Valid
Gifts of real estate must be made in writing and registered with a competent official. Simply promising the gift in front of relatives, writing it down on paper, or handing over the title deed to hold does not transfer ownership.
A common scenario is parents telling all their children, "We've given this plot to this person," but never going to the land office. When the parents pass away, that plot remains part of the inheritance, and all heirs are entitled to a share — which is inconsistent with what everyone had always believed.
The Most Overlooked Warnings
The donor has no place to live. Giving the entire house to one's children without having a right of habitation or usufruct registered for oneself. When the relationship changes, or the child sells the house onward, the donor has no legal right to remain. If one wishes to live there until the very end, the right should be registered together with the transfer, rather than relying on gratitude alone.
The child has debts. Once transferred, the property belongs to the child, and the child's creditors can enforce execution against it.
Transferring to only one person without telling the others. Legally, this can be done, but in practice it is the starting point of lawsuits between siblings, who claim that the donor was deceived or lacked sufficient mental capacity on the day of the transfer.
Transferring when health has already deteriorated. The closer to the end of life, the higher the likelihood that the transfer will be contested later. If a transfer must be made during that period, there should be clear witnesses and supporting documents.
Fees and Taxes
Land transfers between ascendants and descendants have fee rates and tax treatments that differ from ordinary sales, and the detailed conditions are subject to periodic updates. You should check with the local land office and tax advisors before setting the transfer date, because the choice of transfer method affects the resulting tax burden.
The middle path many families use
- Transfer with registration of usufruct or right of habitation for the giver The children gain ownership, while the parents remain and can use it in accordance with the law.
- Divide assets into two pools Transfer assets with no disputes outright; put assets that are still uncertain into a will.
- Always make a will alongside Even if some assets have been transferred, the remaining assets still need someone to manage.
- Tell everyone while still alive Most inheritance disputes start from a feeling of being kept in the dark, rather than from the actual division itself.
Read more
- Basics of Wills and Inheritance
- Guide to Managing an Estate and Appointing an Estate Administrator
- If You Inherit Assets, Do You Inherit the Debts Too?
📌 See more: Inheritance and Wills · Real Estate
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This article provides general information and does not constitute legal advice for any specific case.