Good Morning, We as parents are separating on a mutual consent basis, and part of financial arrangement that we reached was to have the joint properties held in our name transferred under the children name for their financial security. Questions 1. What are the likely issues that may arise due to this? ( not to consider potential sibling rivalry in the future or a rivalry between us parents, assumption be all things remain cordial) 2. We have a desire to build a house in one of the joint properties , for the children. Does having the property transferred to the children name prevent us from doing it?\ 3. Assuming above is yes, what are the mechanisms under law we can use, to ensure that the property is transferred to kids and a house can be built? 4. With the elder child at 15 and younger at 10, if at a future date, we may need to sell on of these properties (which will be in their joint name) , to fund their unforseen education or medical expenses, how easily we may do it, considering, the youngest would remain a minor for another 8 years. 5. I understand , may be an ideal solution be to have properties transferred to individual children, but since valuations of different properties are oceans apart , it will be an unfair advantage for one of them , if we opt that path 6. What other complications are likely to arise, and what workarounds exists under law to handle those complications, such that they may be factored before the actual change of title in the deed
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1) for sale of property standing in children name you would need court consent
2) as guardian of children you can construct house on the land
3) court would grant consent for sale of property standing in minor name to fund their education requirements
4) in the event any disputes arise between children after they attain majority suit for partition would have to be filed for division of property by metes and bounds
Dear Client,
Once property transferred in the name minor child, he will be sole owner and property cannot be alienate without court order and after 18 years of age he will be in full custody.
Construction is not barred or required court permission.
Think all your queries answered at first.
1. If you want to sell any of the properties in the names of the minor children, you will have to approach the court and obtain permission. Another problem which may be faced is elder child has to wait the younger one also to become major to do anything with regard to the properties.
2. The building permit will be issued to the owners of the property. It would be better to construct and the transfer separately to each one
3. There are ways out as guardian. But It would be better and convenient to construct and then transfer
4. Once the elder one becomes major, he will be the owner of half undivided rights over the properties as per this arrangement. Therefore selling the other half for the benefit of younger one can only be done through court interference and also with the consent of elder one as it is undivided.
5 & 6. If the properties are divisible, it would be ideal to divide and transfer to both. Or sell one or whole property and put the same in nationalized bank under FD.
1. Since you want to transfer the immovable properties to your minor children, you may do it on each individual's name with proper demarcation and by appointing a proper guardian with clear recital that the guardian cannot sell or alienate the property anytime for any reason.
2. You can very well go ahead but you can't claim the expenses at a later stage.
3. There is no restrictions in law for doing this, however if the property already transferred to children' name, the parents cannot stake any claim on it.
4. The property remaining on the minor children name cannot be sold without permission of court competent.
5. You may have to follow a wise step using your prudence.
6. You can consult a local advocate by producing all the relevant papers before him and get advice on further steps
