Your property-related legal queries answered by S.C. RAGHURAM, Partner, RANK Associates, a Chennai-based law firm

My wife wants to draft a settlement for her apartment in our daughter’s name (US green card holder who has no property in India but has own apartment in USA). I plan to get a settlement for our house in favour of our son (US citizen who has no property in India but has own house in USA).

We both would like to have a power of attorney for post transfer dealings. Is it necessary for our children to be in India for the transfer? Do they need PAN card, Aadhar card etc so can they apply from the US? What are the expenses, tax implications in both countries?

P. Suriyanarayanan

Chennai

It is possible to register a deeds of settlement in favour of your son and daughter as indicated by you and this does not require their physical presence in India. However, they would need to accept the settlement in their favour.

Subsequent to registration of settlement deeds, they can execute deeds of power of attorney authorising you to deal with the property within the scope of powers granted therein.

The said document has to be executed before a competent officer of the Indian Embassy or a Notary Public in the USA and has to be adjudicated by the sub-registrar having jurisdiction, within three months from the date of receipt of the said document in India. They will require proper identity proof (such as Passport or OCI Card). Please contact your lawyer to ascertain the expenses involved.

Please consult your chartered accountant for obtaining PAN cards for your son and daughter and tax implications of owning a property in India by US citizens.