Introduction to Property
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The term property derives from Latin and French origins, signifying something that is owned.
Property is a fundamental concept in various legal systems and economies worldwide, encompassing the rights and interests individuals or groups hold over both tangible and intangible assets.
Types of Property
- Joint Family Property: This type of property is acquired using family funds and is intended to fulfil the needs of the family.
- Self-Acquired Property: This refers to property obtained through personal efforts, which may include self-education and individual endeavours
The Gains of Learning Act, of 1930 defines 'learning' to encompass various forms of education, while 'training' is considered preparation for a specific trade or profession.
Inheritance and Succession
Inheritance is the process by which an heir receives property after the death of an ancestor, following the rules of succession. Different laws govern succession based on religion, such as the Hindu Succession Act for Hindus and Muslim Personal Law for Muslims.
Types of Rights
After the death of a property owner, the rights to the property are classified into inheritable and un-inheritable rights.
- Inheritable rights are rights that remain valid after the owner's death and are passed on to their legal representative. For example, proprietary rights fall under this category.
- Un-inheritable rights are rights that cease to exist after the owner's death. These are personal rights that are tied to the individual, such as the right to privacy.
Succession is the process of transferring rights to property following the death of the owner.
Question for Chapter Notes: Property, Succession and Inheritance
Try yourself:
Which type of property is acquired through personal effort or work?Explanation
- Self-acquired property is obtained through personal effort or work, including learning on one's own.
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Succession
Succession refers to the process of inheriting property after someone has passed away. It involves the estate left behind by a deceased person.
Types of Succession
There are two main types of succession:
- Intestate succession occurs when a person dies without a will.
- Testamentary succession happens when a person leaves a will specifying how their property should be distributed.
- Heir: An heir is an individual entitled to inherit the property of a deceased person.
- Testator: A testator is someone who creates a legally valid will outlining the distribution of their property before they pass away.
- Will: A will is a legal document that specifies how a person's property should be divided among heirs after their death.
Landmark Judgement on Passive Euthanasia
- In March 2018, the Supreme Court of India allowed passive euthanasia under strict guidelines. Passive euthanasia involves withdrawing life support to hasten the death of terminally ill patients.
- The court ruled that individuals could refuse artificial life support through a living will, provided certain conditions are met.
- It affirmed that the right to die with dignity is an integral part of the right to live with dignity, as per Article 21 of the Indian Constitution.
- This decision stemmed from a Public Interest Litigation (PIL) filed by the NGO Common Cause, advocating for the right to create a living will for passive euthanasia.
Testamentary Succession
- Testamentary succession occurs when an individual bequeaths their property through a will.
- The Indian Succession Act of 1925 governs this form of succession.
- Individuals can only own their property, and the law ensures adherence to the deceased's wishes regarding property distribution.
Intestate Succession
Introduction to Intestate Succession
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When a person passes away without leaving behind a will, they are referred to as intestate, which gives rise to the concept of intestate succession.
In such cases, the distribution of property is determined by applicable laws or customs. Let’s explore the intestate succession laws across different religions.
1. Hindu Law
- According to Hindu law, when an individual dies intestate, both separate and joint family properties are inherited by their heirs as per the Hindu Succession Act, 1956.
- The Hindu Succession (Amendment) Act of 2005 eliminated gender-discriminatory provisions, ensuring that daughters have equal inheritance rights as sons in their fathers’, grandfathers’, and great-grandfathers’ properties.
2. Muslim Law
- Intestate succession for Muslims is often governed by religious texts, although it may also adhere to local laws in certain areas.
- There is no differentiation between ancestral and self-acquired property in Muslim law, and an heir’s rights materialize upon the death of the ancestor.
3. Other Religions
- The intestate succession of Christians and Parsis is regulated by the Indian Succession Act of 1925, with each religion having its specific guidelines.
A common principle across different religions is the categorization of heirs into Ascendants, Descendants, and Collaterals.
A. Heirs - Ascendants, Descendants, and Collaterals
- Ascendants comprise ancestors from both the paternal and maternal sides, including parents, grandparents, and further ancestors.
- Descendants encompass offspring such as children and grandchildren, without limitations on the number of generations.
- Collaterals refer to relatives in parallel lines, including siblings, uncles, aunts, and their children, related by full blood, half blood, or uterine blood.
B. Relation by Full Blood, Half-Blood, and Uterine Blood
- Full blood relation occurs when two individuals share both parents.
- Half-blood relation exists when two individuals share the same father but have different mothers.
- Uterine blood relation is when two individuals share the same mother but have different fathers.
Generally, the intestate succession rules across various communities are quite similar, typically prioritising the spouse and children of the deceased. Following them, close relatives such as collaterals are considered, with more distant agnatic and cognatic heirs being regarded afterwards.
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Chapter Notes: Property, Succession and Inheritance
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Rules Regarding Intestate Succession
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When a person dies without a will, the distribution of their property varies according to the rules of intestate succession, which differ among religions.
Rules of Intestate Succession for Hindu Males
- Class I heirs include the mother, wife, son, daughter, and their descendants up to the third generation.
- Class II heirs consist of the father, brother, sister, uncles, aunts, grandparents, etc.
- Agnates inherit only if there are no Class I or Class II heirs.
Rules of Intestate Succession for Hindu Females
- Heirs are divided into five categories, with priority given to earlier categories.
- Categories include husband, son, daughter, heirs of husband, father, mother, and heirs of father and mother.
Rules of Intestate Succession among Muslims
- Sunni Muslim: Heirs are classified into Sharers, Residuaries, and Distant kindred.
- Shia Muslims: Heirs are categorized into those related by blood and those related by marriage.
Rules of Intestate Succession under the Indian Succession Act, 1925
- The Act applies to Christians and Parsis, but not to Hindus and Muslims.
- For Christians, preference is given to the spouse and direct descendants.
- The Rule of Escheat applies when no heir is available, and in that case, the property goes to the Government.
Question for Chapter Notes: Property, Succession and Inheritance
Try yourself:
Which form of succession occurs when a person distributes their property through a will?Explanation
- Testamentary succession occurs when a person distributes their property through a will, specifying how their assets should be distributed after their death.
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Testamentary Succession
- In Muslim law, an executor is referred to as a "wasi," which is derived from "wasiyyat," meaning a will.
- A mentally competent adult Muslim can create a valid will without adhering to a specific format.
- Any clear expression of testamentary intent, whether verbal or written, suffices.
- A Muslim can bequeath only one-third of the estate after settling obligations such as funeral expenses and debts.
- The remaining portions are distributed by Islamic law.
Testamentary Succession among Hindus, Parsis, and Christians
- Testamentary succession for Hindus, Parsis, and Christians is regulated by the Indian Succession Act of 1925.
- The Act outlines the formalities involved in executing, revoking, reviving, and interpreting wills.
- It also addresses the granting of probate and the duties of executors.
- In cases of intestacy where no executor is appointed, administrators are responsible for managing the estate.