What is a void real estate transaction?


Is it possible to challenge a deed of gift or will?

A citizen who has full legal capacity is free to make any transactions not prohibited by law with his property, which he owns by right of ownership. He can sell his movable or immovable property, exchange it, rent it out or donate it.

If a person wants to dispose of his property posthumously, then ordinary bilateral alienation transactions cannot be applied here.

According to Article 1118 of the Civil Code of the Russian Federation (hereinafter also referred to as the “Civil Code of the Russian Federation”), property can be disposed of in the event of one’s death only by drawing up an order, and in no other way. Many people confuse a will and a deed of gift, although there is a huge legal difference between them.

Types of void transactions

Types of void transactions
A transaction for the purchase and sale of an apartment is considered void if it was concluded with certain violations of the law. The list of such violations is indicated in the Civil Code.

According to the Civil Code, the following transactions are void:

  • Transactions that violate the law and at the same time encroach on the rights of third parties (clause 2, article 168 of the Civil Code of the Russian Federation); “third parties” are a key factor here, because transactions “simply violating the law” are voidable (more on this below).
  • Transactions made for a purpose contrary to the foundations of law and order and morality (Article 169 of the Civil Code of the Russian Federation); This involves a deliberate illegal act, for example, selling an apartment using forged or invalid documents.
  • Transactions concluded with incapacitated persons (Article 171 of the Civil Code of the Russian Federation).
  • Transactions concluded with minors, i.e. with persons under 14 years of age (Article 172 of the Civil Code of the Russian Federation); for example, when a 13-year-old child signed a contract (although parents or guardians must do this for him).
  • Imaginary (fictitious) transactions, i.e. transactions made for show, without the intention of creating real legal consequences (Article 170 of the Civil Code of the Russian Federation); for example, an imaginary (“make-believe”) donation of property by a debtor in order to avoid inventory or seizure of this property.
  • Sham transactions, i.e. transactions covering other transactions (Article 170 of the Civil Code of the Russian Federation); for example, when a formal gift transaction covers an actual purchase and sale transaction with a real transfer of money.
  • Transactions with property, the disposal of which is prohibited or limited by law, incl. sale of property by a debtor or bankrupt legal entity (Article 174.1 of the Civil Code of the Russian Federation).

The difference between voidable transaction and a void one also lies in the fact that different statutes of limitations apply to them. For voidable transactions - one year, for void transactions - three years, with the possibility of increasing this period to 10 years (Article 181 of the Civil Code of the Russian Federation).

Thus, when preparing a transaction, the Buyer of an apartment should, at a minimum, eliminate the signs of a void transaction (see above), and then try to avoid serious reasons for challenging the transaction (see below).
The seller doesn’t have to worry too much about this - in the worst case, the apartment will simply be returned to him through the court. Conditions of the Agreement for the sale and purchase of an apartment on the secondary market. What is important here for the Buyer?

What is the difference between a deed of gift and a will?

A deed of gift is a gift agreement - a bilateral transaction, the legal rules for the execution of which are regulated by Chapter 32 of the Civil Code of the Russian Federation.

Under this agreement, one party (referred to as the donor), who acts as the owner of the property, transfers to the second party (referred to as the donee) the property specified in the agreement into ownership free of charge.

If real estate is given as a gift, then the transfer of the right to it under a gift agreement is subject to mandatory registration with the Rosreestr authorities.

The most important condition of the donation agreement is that the transfer of property as a gift must be made during the life of the donor. According to the direct instructions of Art. 572 of the Civil Code of the Russian Federation, the contract cannot provide that property is transferred as a gift after the death of the donor. If such a condition is contained in the agreement, then this agreement will be considered void.

The norm of Article 572 of the Civil Code of the Russian Federation is fully consistent with the requirements of the already mentioned above Article 1118 of the Civil Code of the Russian Federation, according to which, in the event of death, property can be disposed of exclusively through the preparation of a will.

Thus, a deed of gift must be drawn up and its terms must be implemented strictly during the life of the donor, but a will is drawn up, naturally, during the life of the testator, but its conditions on the distribution of the testator’s property begin to apply only after his death.

This is the key difference between a deed of gift and a will. Unknowingly, many people draw up deeds of gift under the condition of death. Such agreements are void and do not create legal consequences.

If property can be transferred by gift at any time, as soon as such an agreement is concluded, then the heirs will be able to receive property through a will no earlier than six months from the moment the testator leaves for the best of worlds. A six-month period is given for the conduct of the inheritance case, when potential heirs can claim their rights to the property.

In the event that the deed of gift was drawn up according to all the rules during the life of the donor, and the property was transferred to the recipient of the gift (including, all rights to real estate were registered in Rosreestr), then such property will no longer be included in the inheritance estate, because that it will have a new owner.

In the deed of gift, the donor can indicate absolutely any person as the recipient of the gift - be it a relative or a complete stranger. If the donee signs a gift agreement, then he agrees to accept such a gift.

The donor is not burdened with any conditions regarding obligatory donees - the Civil Code of the Russian Federation establishes the principle of freedom of contract, accordingly, the donor himself determines who and what he gives.

The situation with a will is somewhat different. According to Article 1119 of the Civil Code of the Russian Federation, the testator also has freedom of testamentary will and can provide for any circle of his heirs in it. However, this same article limits the will of the testator from absolute to relative.

The law says that regardless of who is indicated as an heir in the will, the obligatory share in the inheritance must be received by the persons specified in Article 1149 of the Civil Code of the Russian Federation, namely:

  • Disabled parents or children, as well as minor children of the testator;
  • Other disabled dependents who were supported by the deceased for at least a year before his death.

No matter who is indicated in the will, these persons will in any case receive their share, even if this entails a reduction in the inheritance shares of other heirs that are indicated in the will.

Another very significant difference between a gift and a will is the tax burden.

According to Articles 224 and 227 of the Tax Code of the Russian Federation (hereinafter also referred to as the “Tax Code of the Russian Federation”), a tax is paid on property received as a gift at a rate of 13% of the cadastral value of the apartment. Only close relatives of the donor are exempt from paying tax if they act on the side of the donee.

Read about how you can challenge a will for an apartment here.

The circle of close relatives is determined according to the norms of family law. If the recipients of the gift are other persons, they will have to pay tax at the established rate. And if the recipient of the gift is a non-resident of the Russian Federation, then he will need to pay 30% of the cost as a tax transfer.

The tax on inherited property is currently not paid - it was abolished back in 2005. Now, when registering an inheritance, you only need to pay the state fee (tariff) to the notary, who issues a certificate confirming the rights to the inherited property.

The state duty (tariff) is determined by clause 22 of Article 333.24 of the Tax Code of the Russian Federation, and is charged in the following amounts:

  • 0.3% of the value of the estate, if the heirs are the parents, spouse, children, sisters or brothers of the testator (in this case, the maximum amount of payment of state duty should not exceed 100,000 rubles);
  • 0.6% of the value of the inheritance when other persons inherit (in this case, the maximum amount of state duty will be limited to 1,000,000 rubles).

In addition to all of the above, a deed of gift differs from a will in the varying degrees of possibilities for challenge.

The procedure for recognizing insignificance

In order for a transaction to be recognized as void, it must be recognized as such through the court. It is important.

Even though the law clearly states that there is no such need for this type of transaction, without a court, unscrupulous parties to such agreements would simply refuse to fulfill their obligations.

A claim must be filed in court by a party to the transaction or another interested party . In certain cases, the court limits the list of citizens who can be plaintiffs under such agreements.

This rule applies to:

  • Transactions made by a legal entity. Here, the plaintiffs can only be the founders, the company itself or supervisory authorities.
  • Transactions made by an incapacitated person. Only the guardian can be the plaintiff.
  • Transactions concluded by minors. The plaintiffs are the parents or their substitutes.

Judicial practice in such disputes indicates that claims in such situations can take three forms:

  • A claim for recognition of the invalidity of a void transaction and application of the consequences of invalidity;
  • Claim for application of consequences of invalidity of a transaction;
  • Claim for recognition of a void transaction as invalid.

When challenging agreements concluded by incapacitated citizens, an additional claim may be filed for compensation for damage caused by such an agreement.

Limitation period for void transactions

The Civil Code of the Russian Federation states that the period for recognizing agreements as void for 2020 is 3 years. For the parties to the transaction, this period begins to be calculated from the date of commencement of execution of the transaction, for other persons - from the day when they learned about it, but no more than 10 years from the date of commencement of execution of the agreement.

When the injured party misses the statute of limitations, the provisions of the parties and the fulfilled obligations remain in the same state. For this outcome, the defendant will have to declare in court that the statute of limitations applies.

If the transaction has taken place, but the obligations have not begun to be fulfilled, no one’s rights are violated, which means there is no need to protect them.

Consequences of declaring a transaction void

The legislation establishes the following types of consequences of the nullity of transactions:

  • Termination of the agreement. From this moment on, all rights and obligations are canceled, and it is considered that the transaction never took place.
  • Restitution. This is the return of everything transferred by agreement between the parties to each other.
  • Refund. The party that causes damage to the other party through a void transaction must pay compensation or pay damages.

A transaction may be declared void either in whole or in part. Restitution under the law can come in three forms.

The first form is unilateral restitution, when one party returns everything received under the agreement to the second party, and the second - to the state.

The second form is bilateral restitution, when both parties return everything to its original state by transferring what was received. If the subject of the transaction cannot be returned in kind, compensation of proportionate monetary compensation is allowed.

It is also possible to prevent restitution - this is the third form of its manifestation. In such a situation, everything received under the transaction from both parties is returned to the state. This form is usually applied to insignificant transactions that are clearly antisocial in nature.

In addition, as consequences of the nullity of a transaction, the recovery of actual damage or losses, the recovery of interest for the use of other people's funds, the adjustment of tax obligations, or the recovery of unjust enrichment can be applied.

Tax consequences of nullity

Judicial practice makes it possible to draw a number of conclusions regarding the application of tax consequences in relation to transactions recognized as void and invalid.

Thus, tax adjustments in case of nullity of the agreement can be applied according to the following rules:

  • Recognition of invalidity does not entail a change in tax relations, except in situations where such a basis is expressly stated in tax legislation;
  • Recalculation of tax adjustments can be made only after completion of bilateral restitution;
  • Tax obligations due to the invalidity of the agreement arise at the moment the court decision enters into force.

Judgments in civil disputes come into force one month after they are issued, except in rare cases.

A void transaction is an invalid transaction that does not require challenge. It inherently has no legal force, but must be recorded as invalid by the court to protect the interests of all interested parties.

The consequences of the nullity of a transaction arise immediately upon its signing.

Video: Deadly Deal

Is it possible to challenge a will?

If the will is declared invalid, then its terms will not be applied and the inheritance will be carried out within the framework of the order established by law, or an earlier will, if there was one.

To challenge a will, according to Article 1131 of the Civil Code of the Russian Federation, is allowed only after the death of the testator. Because a will is a one-sided transaction; the general provisions of the Civil Code of the Russian Federation on the invalidity of transactions apply to it.

But the will will also be subject to other specific rules, which are established in Chapter 62 of the Civil Code of the Russian Federation. This chapter establishes additional regulations for the form and content of a will.

Thus, a will can be challenged on two groups of grounds at once - general civil and special norms of Chapter 62 of the Civil Code of the Russian Federation.

A worthless deal

If the transaction is void, then to declare it invalid there is no need to go to court, since, by force of law, it is already invalid from the moment of its conclusion. In case of a void transaction, the court is only asked to invalidate the consequences of the transaction. Moreover, any interested person can file a claim.

Grounds for nullity of transactions:

1. A transaction that does not comply with the requirements of the law or other legal acts is void unless the law establishes that such a transaction is contestable.

For example: in a long chain of sales and purchases that have already been made, there is an apartment in which the rights of minor children were violated during privatization. The guardianship authorities did not give prior permission for the non-participation of children in privatization. It all comes out somehow. Privatization is declared invalid, and the entire multi-part transaction instantly becomes void. Citizens must return to their original position, that is, move into their previous apartments, return the money received and start all over again.

2. A transaction made for a purpose contrary to the foundations of law and order and morality is also void.

Transactions with forged documents, forged signatures, etc. may fall under this basis.

3. Imaginary and feigned transactions are also void.

An imaginary transaction is a transaction made only for show, without the intention of creating legal consequences corresponding to it. For example, re-registration of real estate to a dummy person in order to evade seizure of property.

A sham transaction is a transaction made to cover up another transaction. Under the guise of a gift, sell real estate.

4. A transaction made by a citizen declared incompetent as a result of a mental disorder is void.

If such a citizen has concluded a purchase and sale agreement, then his legal representative may file a lawsuit in court to declare the consequences of such a transaction invalid. In this case, the buyer will have to return the apartment, and the seller will have to return the money. But in the interests of an incapacitated citizen, a transaction may, at the request of his guardian, be recognized by the court as valid if it was concluded for the benefit of this citizen.

5. A transaction concluded by a minor citizen is void.

Here, minors mean citizens under 14 years of age. In practice, of course, it is unlikely that you will meet a 10-year-old apartment seller. But you still need to know about this basis for the nullity of transactions.

Is it possible to challenge a deed of gift?

If the property passed to the recipients of the gift and became their property, then such property is not included in the inheritance mass, because it is no longer the property of the testator. Heirs who doubt the legal validity of the deed of gift can go to court with demands to declare it invalid and return the property for inclusion in the estate.

In general, there are fewer grounds for declaring a deed of gift invalid than for a will. The grounds for declaring a deed of gift invalid are general civil ones, as well as those provided for in Chapter 32 of the Civil Code of the Russian Federation.

As a rule, the main part of the violations associated with deeds of gift is, as noted above, the indication in the text of the agreement of the conditions under which the gift becomes the property of the donee only after the death of the donor. These wordings in the text of the agreement will entail the nullity of the agreement from the very beginning of its conclusion.

The law divides invalid transactions into subtypes:

  • Void (invalid from the very beginning);
  • Disputable (the fact of invalidity of which is established by the court).

Both a deed of gift and a will can be either voidable or void - in the first case, this will be established by the court during the trial of the case, in the second, the court will only confirm the fact of nullity.

But in any case, if the transaction is declared invalid, it will not entail any legal consequences.

In this case, there will be more grounds for invalidating a will than for recognizing a gift agreement as such.

Voidable transaction

A voidable transaction is a transaction that may or may not be recognized as invalid by a court. Only persons specified in the law can file a lawsuit to declare a transaction invalid.

Grounds for voidable transactions:

1. A transaction made under the influence of deception, violence, threat, malicious agreement between a representative of one party and the other party, as well as a transaction that a person was forced to make due to a combination of difficult circumstances on extremely unfavorable conditions for himself (a enslaving transaction), may be recognized invalid by the court on the claim of the victim.

For example, registration of real estate obtained as a result of deception or violence in the name of dummies. If the transaction is declared invalid, the defendant must return to the victim everything received under the transaction. The property received by the victim from the defendant under the transaction is turned into the income of the Russian Federation. If it is impossible to transfer property to the state, its value is collected.

2. A transaction made under the influence of a mistake may be declared invalid by the court at the request of the party acting under the influence of the mistake. But the misconception must be of “substantial significance.”

In accordance with Art. 178 of the Civil Code of the Russian Federation, “misconception regarding the nature of the transaction or identity or such qualities of its subject matter that significantly reduce the possibility of its intended use is of significant importance. The misconception regarding the motives for the transaction is not material." If the court declares the transaction invalid on this basis, then two-way restitution occurs. In addition, the plaintiff party has the right to demand compensation from the other party for actual damage caused to it if it proves that the mistake arose through the fault of the other party. If this is not proven, the plaintiff party is obliged to compensate the other party at its request for actual damage caused to it, even if the error arose due to circumstances beyond the control of the erring party.

3. A citizen may be recognized as having limited legal capacity if he abuses alcohol or drugs.

A transaction made by a citizen recognized as having limited legal capacity may also be declared invalid by the court. In order for a citizen with limited legal capacity to sell or buy real estate, the consent of the trustee is required. If the transaction is completed without such consent, the trustee may file a lawsuit to declare the transaction invalid. If the court recognizes the transaction as invalid, two-way restitution occurs.

4. Citizens aged 14 to 18 years have the right to dispose of real estate only with the prior consent of their parents, adoptive parents or guardian.

If there is no such consent, then the legal representatives can file a lawsuit to declare the real estate transaction invalid. But it is possible to acquire full legal capacity before reaching 18 years of age (marriage before 18 years of age, emancipation). For transactions with real estate by such citizens, the consent of legal representatives is not required.

5. A transaction can be declared invalid if a citizen entered into it without being able to understand the meaning of his actions.

The claim is filed by the citizen himself or by persons whose rights are violated as a result of such a transaction. The consequence of such a transaction is also bilateral restitution.

6. If real estate is jointly owned by spouses, then the disposition of such property requires the notarized consent of the second spouse.

The spouse, whose notarized consent to carry out the said transaction was not received, has the right to demand that the transaction be declared invalid in court within a year from the day when he learned or should have learned about the completion of this transaction.

Forbidden

It is more profitable for the heir to draw up a deed of gift. It is almost impossible to challenge a gift document and the property automatically passes into the possession of the recipient. He has the right to dispose of the property after registration of the agreement.

If we talk about a will, then the right of inheritance is received only six months after the death of the testator. Video: Which is better, a deed of gift or a will? What is easier to challenge: a deed of gift or a will? In order to challenge any document, you must prove in court that:

  • The donor or testator was insane at the time of signing the document due to mental or physical illness or under the influence of drugs, medications, or alcohol.
  • The donor or testator signed the document not of his own free will, but under the threat of his life.

Remember! A will and a deed of gift can equally be challenged in court, but it is quite difficult.

Examples of void transactions

Transactions concluded against the rule of law most often include those concluded under close supervision by the executive branch. For example, in cases where the terms of the agreement provide for the tax amount to be minimal, the tax service becomes the initiator. By the way, when it comes to this type of transaction, the court sides with the prosecutor.

The main thing in an imaginary transaction is the appearance of the transaction on paper, although the parties do not receive rights and obligations as a result of its conclusion. For example, when a borrower, not wanting to repay a loan or other debt, enters into an imaginary transaction for the alienation of his property, but continues to solely use and own the property. In such cases, the creditor can demand cancellation of the transaction. As a rule, the court does not refuse creditors' claims.

If we talk about contracts based on the incapacity of one of its participants, then it is easier to challenge such a transaction than others. For example, there are frequent cases when relatives, taking advantage of the incapacity of their elderly relatives, make real estate transactions. It is clear that with full legal capacity the old man could refuse to sign the document.

What is better - a will or a deed of gift for an apartment?

  • 1 Is it possible to challenge a deed of gift?
  • 2 Who and how can challenge a deed of gift for an apartment or house
  • 3 In what cases can a gift agreement be challenged and declared invalid 3.1 After the death of the donor
  • 3.2 After state registration
  • 4 Can relatives challenge the deed of gift?
  • 5 Is it possible to return an apartment after donation?
  • 6 Is it possible to challenge a deed of gift in court?
  • 7 Time limits for challenging a gift agreement
  • 8 Supporting documents
  • 9 Conclusion
  • Today, you can transfer your property to another person through the conclusion of a purchase and sale agreement, as well as as a result of a gratuitous donation formalized by an appropriate agreement.

    In what cases is a real estate transaction void?

    In jurisprudence, there are two similar but different concepts - voidable and void transactions. The main difference between them is that a voidable real estate transaction is declared invalid by a court decision, while a transaction is void from the moment of its conclusion and does not require special recognition. In essence, a void transaction is a special case of an invalid transaction, but the violation of the law is so obvious that it does not require special proof.

    In what cases can a transaction be called void? Here are the main reasons:

    1. A direct violation of the Constitution, federal or local laws, or other regulations - each concluded transaction must comply with the current legislation in this area. If this is not the case, such a transaction cannot be considered legal.
    2. The transaction is imaginary - that is, it does not actually give rise to legal consequences and legal relations that are declared at its conclusion. As an example, we can mention a common scheme when the debtor allegedly sells real estate to a friend or relative, but in fact does not receive the money and continues to use the property. But the creditor cannot take away the property, since it already has a different owner.
    3. The deal is a sham - that is, it is concluded with the aim of covering up another, the terms of which one does not want to disclose. For example, often when people sell an apartment, they do not want to pay tax, so a deed of gift is formally drawn up, and the money for the property is transferred behind the scenes.
    4. One of the parties does not have sufficient legal capacity - according to the law, only parties who have reached a certain age and do not have mental illness can enter into a transaction. If this condition is not met, such a transaction is void.
    5. The transaction contradicts the fundamentals of law and order and morality - although this formulation is quite vague, it is often used to challenge transactions and recognize them as void.
    6. The form of the transaction has not been observed - even if the transaction looks completely legal, but does not meet existing requirements (for example, the purchase and sale agreement for an apartment has not passed mandatory state registration), it is void in fact.

    In addition, it is worth mentioning a separate condition for legal entities. Not all organizations have the right to enter into real estate transactions; accordingly, contracts concluded by such companies are also void.

    Is it possible to challenge a deed of gift for an apartment or house (before and after the death of the donor)

    How much will it cost to prepare these papers and accept the property:

    • Preparation of both versions of papers can be free. However, the will is certified by a notary, the cost of this procedure is 100 rubles;
    • The inheritance tax has been abolished, but the gift tax remains. However, the gift is not subject to taxes if it is made between close relatives. Acceptance of the estate by way of inheritance gives rise to the obligation to pay state duty at a rate of 0.3% for relatives and 0.6% for other heirs.

    The tax and duty rates are calculated based on the value of the transferred property.

    Thus, you can accurately calculate the cost by knowing how much the property is valued at and how close the parties to the transaction are. At the same time, it is beneficial to conclude a deed of gift only between close relatives, and a will between other persons.

    Deed of gift or will? detailed consideration

    Can relatives challenge a deed of gift? As previously noted, the right to challenge a gift agreement can be transferred by the relatives of the donor only if the donor himself has died. Due to the fact that they are not parties to the agreement, the law gives them a longer period during which they can make a claim.

    This is due to the fact that they may not know that the rights to the real estate were transferred free of charge to a third party. To challenge, the interested relative must go to court and provide objective evidence.

    Is it possible to return an apartment after donation? In practice, it is quite difficult to return property donated on the basis of a concluded agreement. To do this, it is necessary to submit information to the court confirming the facts of violation of the terms of the agreement.

    On what grounds can a bank challenge a debtor’s transactions?

    Typically, lawyers of banking organizations draw up a statement of claim after lengthy attempts to negotiate with the debtor peacefully. During this period, bona fide borrowers sell assets to pay off the debt and try to negotiate a restructuring. Some defaulters enter into fictitious transactions in order to protect property from foreclosure and achieve favorable debt payment terms in court. Bank lawyers can challenge completed transactions in two ways.

    The debtor's transaction was declared invalid

    1. Challenging transactions in the general manner (based on the Civil Code of the Russian Federation). If the borrower tries to hide the presence of assets from the bank and achieve a preferential repayment schedule due to sudden financial problems, the transactions can be challenged in accordance with the articles of the civil code. For example, a bank lawyer may refer to the incorrect execution of the purchase and sale agreement or the presence of false buyer details.
    2. Challenging transactions in accordance with Federal Law-127 (bankruptcy of citizens and organizations). If the borrower resells assets before going through bankruptcy, the bank's lawyer can challenge the transactions on the grounds that they are dubious. For example, a bank lawyer found and provided the court with evidence of the debtor’s residence in the apartment after the date of its official sale. Such a transaction will be contested, even if the agreement is drawn up in compliance with legal norms.

    Typically, citizens and organizations acting as defendants in cases of forced debt collection hide the fact of transactions. For example, the buyer pays for assets in cash, the transaction is formalized retroactively.

    Obligations for invalid transactions are canceled

    Lawyers of the creditor bank conduct their own investigation to identify the presence of fraudulent agreements on the sale and purchase or gift of assets. Typically, information is taken from open sources (for example, in Rosreestr or Unified State Register of Individual Entrepreneurs); the debtor’s data can also be requested from FSSP employees.

    Will or deed of gift? pros and cons of each option

    The process of making a will A will (for an apartment, house, car and other property) provides for the following actions:

      The testator's wishes must be clearly stated. The testator needs to define his own will regarding the division of the inheritance as precisely as possible in writing to avoid ambiguity or misinterpretation.

    And the paper must be drawn up in accordance with existing legal requirements.

      Establish the share of each of the heirs mentioned in the will. A clearly stated share for the heirs will free the latter from unnecessary strife.
      It is not recommended to use joint ownership for this purpose. If there is more than one heir, then for each unit of real estate, allocate a specific heir or his part in the inherited property.
    • Subappointment of heirs.

    Differences between a deed of gift and a will: which is better and more profitable

    • What is the difference between a deed of gift and a will?
    • Which is better: a will or a deed of gift for a house?
    • Which is cheaper?
    • What is being disputed in court: a deed of gift or a will?

    When choosing how to transfer your property to another person, you should weigh the pros and cons. Moreover, if the choice is between a gift agreement and inheritance.


    What is better and cheaper? What should the owner do? What is the difference between a deed of gift and a will? The difference between these two documents is fundamental. If we turn to their original legal purpose, then:

    • deed of gift is a way to transfer any property free of charge. The parties to the transaction are the donor and the donee;
    • will - a document that transfers the property of the testator to the heir after the death of the first.

    As can be seen from the definitions, the differences lie in the very essence of the purpose of these papers.

    Deed of gift or will

    Who and how can challenge a deed of gift for an apartment or house? Do you need help? Consult our lawyer for free! Laws in our country change very often! Get the latest information by phone! Just call from any region of Russia: Or contact our online consultant! First, let's figure out who can challenge a deed of gift? The law, among all the persons who are interested in invalidating the agreement, identifies the following entities who have the right to challenge the document:

    1. First of all, it is the donor himself. He can exercise his right only in a few cases;
    2. Relatives of the donor.

    The agreement is drawn up in writing and submitted for state registration.

    1. Property valuation is paid.
    2. Notarization fee is required.
    3. An interest rate is paid for issuing an inheritance document (from 0.3 to 0.6%).
    4. The notary is paid to conduct the inheritance case before the certificate is issued.

    Taxes A gift tax in the amount of 13% personal income tax on the value of the inheritance must be paid by the donee if he is not a close relative. To obtain property you will need to pay:

    • Inheritance tax (if it exceeds the size of the MMORT by 850 times).
    • State duty for inheritance.

    Possible problems The donor must remember the responsibility that the gift deed places on him. After all, it will be impossible to change the decision or correct any points. However, for the recipient this is a guarantee of security.

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