Family Agreement and Settlement

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Deed of Family Arrangement 1


Family Arrangement Deed 2


General Partition Deed


Deed of Settlement


Memorandum Recording Family Settlement


Settlement Deed (Between Heirs of Deceased)

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List Of Documents Required

  • Original Documents with one set of Xerox Copies
  • Two Passport Size Photographs of concerned Parties
  • Original ID Proof of the concerned Parties
  • Stamp/e-Stamp paper with correct value of Stamp duty
  • In case of agricultural Land, NOC required
  • Settlement Deed or Family Agreement
  • Family or Legal Heirs Details

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Disputes are inevitable in life but nothing can be better than this if such disputes are resolved through written arrangments. LawDocs Contract Attorney directly helps you in the drafting of family arrangements and settlements. 

  • Deed of Settlement
  • General Partition Deed
  • Family Arrangement Deed

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Family agreement or settlement

Though a family agreement or settlement has not been defined statutorily under any India law. Halsbury’s law of England defines it as “an agreement among members of the same family. Intended to generally and reasonably for the benefit of family either by compromising doubtful or disputed rights. Moreover, by preserving the family property or the peace and security of the family by avoiding litigations and disputes related to family property. What it effectively means that the members of a family arrived at a mutually amicable understanding either in written or verbal regarding movable or immovable property to avoid any existing or future disputes.

Distribution of property

When it comes to distribution of property, a family agreement need not be a single legal document but can be a series of documents describe the property rights of each other. As for taxation regarding the inheritance, since an agreement is not considered a gift or transfer under the income tax laws such a family agreement does not entail any capital gain tax.

A family settlement agreement is valid, legally binding and enforceable contract which is applicable to all the signatories. An oral agreement recorded as a memorandum between the family member is also admissible in court. If it is the written agreement, it should be signed by all the family members involved and should preferably be attested by two witnesses.

As per section 17 of the “Indian Registration Act” if it is a written agreement it should be registered to be admissible in court in case of a written agreement which is intended to serve as proof for a particular arrangement or where legal rights of the members changes, or the transfer or distribution of immovable property is involved the document needs to be mandatorily registered.

An agreement, once it has been executed cannot be revoked without a court decree but it can be challenged in court. It can be challenged on the grounds of fraud, coercion, misrepresentation of facts and improper execution among other reasons which can prove to be the grounds to challenge a family settlement agreement in the court.

Difference between a will and a settlement agreement:

Neither of the instrument is legally superior or better than one another, because the purpose and execution of both are completely different while a will decides how a person wants his assets to be distributed after his death on the other hand the purpose of a settlement agreement is to avoid disputes over inheritance through an amicable consensus among the members. So, an agreement often helps to deal with contentious issues arising from a will. While there are more strict requirements for drawing up a will compared with an agreement, the letter enjoys high sanctity and credence in court.