What is a will vs. gift deed for property transfer?

A will and a gift deed are both instruments used for property transfer but they differ fundamentally in when the transfer takes effect, revocability, tax implications, and legal requirements.

Will

• Transfer takes effect only after the death of the testator.
• Revocable can be changed, modified, or cancelled at any time during the testator's lifetime.
• No stamp duty or registration required (though registration is advisable for safety).
• Must go through probate in some states (Maharashtra, West Bengal, Gujarat) before it is enforceable.
• No immediate tax implications for the testator.

Gift Deed

• Transfer is immediate takes effect upon execution and registration.
• Irrevocable once registered cannot be taken back (except in specific fraud/coercion circumstances).
• Stamp duty is payable typically 2–7% of property value (varies by state).
• Must be compulsorily registered for immovable property.
• Donee may face tax on the gift value (if not from a relative).

The choice between a will and gift deed depends primarily on timing gift deeds transfer immediately; wills transfer after death. For intra-family transfers to avoid future inheritance disputes, a registered gift deed during the donor's lifetime provides certainty. For retaining control, a will is more appropriate.