Transferring property to loved ones is an important decision that requires careful planning. Many property owners wonder whether to use a gift deed or a Will to pass on their assets. While both methods legally transfer ownership, they work in very different ways, have unique tax implications, and carry different risks. Understanding these differences can help ensure a smooth transfer and prevent future disputes. Understanding Gift Deeds A gift deed is a legal document that allows a person to transfer property during their lifetime , without receiving any payment in return. Once the gift deed is executed, registered, and accepted by the recipient, ownership is transferred immediately. For example, consider Ramesh Mehta , a 68-year-old retiree who owns a house valued at ₹2 crore. If he transfers his house to his daughter Neha via a gift deed, Neha becomes the legal owner immediately after registration. Ramesh will, however, have to pay stamp duty and registration charges . After the g...