24/08/2026
Giving assets to your parents? Don’t forget the succession problem
If you have accumulated substantial savings or assets before marriage, you may naturally start thinking about how those assets should be structured before entering into a matrimonial relationship.
One option some people consider is making a genuine gift of money or property to their parents before marriage.
But there is an important distinction here.
Simply parking money in somebody else’s name while continuing to treat it as your own is very different from actually transferring ownership through a genuine and legally valid transaction.
And even where you genuinely gift an asset to your parents, there is another problem that is often overlooked: succession.
Suppose you transfer a substantial asset to your mother or father. Once that asset genuinely belongs to them, it forms part of their property.
If they subsequently die without an appropriate testamentary arrangement, their estate may devolve according to the applicable succession law. If you have brothers or sisters, they may also become entitled to a share.
You may therefore solve one perceived asset-protection problem only to create an entirely different family dispute later.
For example, imagine you transfer a property worth ₹1 crore to your parents. Years later, one of them passes away. You cannot simply assume:
“I originally paid for it, so naturally it comes back to me.”
If it was genuinely gifted, it was no longer your property. What happens thereafter depends upon the parent’s ownership, succession law and any valid testamentary documents.
That is why estate planning becomes equally important.
If parents genuinely own assets and want particular properties to pass to a particular child after their death, they should consider making a properly drafted will reflecting their own wishes. Depending upon the circumstances, registration and other estate-planning measures may also be considered with professional advice.