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What is the Deed Of a Family Settlement?
A Deed Of a Family Settlement is also known as a family compromise agreement. It is an arrangement or a legal document between the family members that records that all family members agree to common terms and conditions in the event of any disagreements. This agreement involves participation and needs to be signed by all the members acknowledging that this agreement was not made through fraudulent means, force, and coercion from any family member. It is normally in the context of resolving a disagreement.
The agreement is confirmed with the approval of all family members who firmly support the resolution given in the agreement at a later date when the event mentioned in the agreement occurs. It is presented in the form of a deed and is properly attested and registered by government officials. The aim is to protect the family’s assets and reputation by recognizing that it is not in the family’s best interests for members to participate in fights or disputes.
Need for Deed Of a Family Settlement Draft Format
The Deed Of a Family Settlement should be made on the basis of good faith. It must not have the consequence of restricting the rights of a family member who is not a consenting party to the agreement. It should be in the essence of resolving conflicts and maintaining peace, rather than provoking conflicts or disturbing harmony. There should be no fraud or unfair control by any family member or member. It has to be a purely voluntary arrangement.
ADeed Of a Family Settlement in the form of transfer, allocation, and recognition of pre-existing rights. As long as it satisfies the other requirement of a valid family settlement deed, any of the pre-existing rights of one or more family members can be revoked by their approval. The issue to be considered is the recognition of their right and not its transfer, even if there is a revocation of rights by one or more members.
FAQs for Deed Of a Family Settlement
Q1. What is the concept of family settlement?
Ans- A family settlement agreement is useful given that it is an amicable resolution among parties and does not take as much time as a court of law. Do note that the transfer of property or assets under this agreement is not to be considered a gift and is neither a transfer of right.
Q2. How do you propose a settlement?
Ans – This means sending a written letter explaining how you wish to settle your debt, how much you are offering to pay, and when this can be paid by. Your debt settlement proposal letter must be formal and clearly state your intentions, as well as what you expect from your creditors.
Q3. What are the essentials of family settlement?
Ans – The family arrangement should be for the benefit of the family in general. The family arrangement must be bonafide, honest, and voluntary and it should not be induced by fraud, coercion, or undue influence. The parties to the family arrangement must have an antecedent title, claim, or interest.
Q4. What is the validity of family settlement?
Ans – The purpose of a family settlement is to resolve or avert a future dispute, and to maintain peace and harmony in the family. Such an agreement is a valid, legally binding enforceable contract, applicable to all the signatories of the settlement.
DEED OF A FAMILY SETTLEMENT SAMPLE FORMAT
BETWEEN
RIVAL CLAIMANTS OF AN ESTATE
THIS DEED OF FAMILY SETTLEMENT is made on the……………..day
of………….Between AB, CD, EF and GH.
WHEREAS ……………….
Recitals
(1) XY, owner of the property mentioned in Schedules J, K, L, M and N dies on
the…………….
(2) AB claims the whole of the said property as the adopted son of XY and the other parties deny the alleged adoption;
(3) CD claims the whole property as the widow of XY and the other parties deny that she is his widow and assert that she was XY‟s mistress;
(4) EF claims the whole property as the son of Z, a sister of Xy but the other parties deny his claim, alleging that EF is not the son of Z but is the son of Z‟s husband
by another wife;
(5) GH claims the whole property as a collateral of XY;
(6) Each of the four parties has obtained possession of a small portion of the estate of XY and has put in the an application for mutation of his name on the whole of the estate;
(7) As the prosecution of the mutation cases and of the civil suits which will necessarily follow, the final decision in the mutation cases will entail heavy expenditure and is likely to ruin the parties, besides further accentuating the existing disharmony among them, the parties on the advice of mutual friends and relations and after taking competent legal advice to ensure amity and goodwill have agreed to settle the dispute amicably by a family settlement in the following manner.
(8) All the conditions of the proposed family settlement have been fully explained to CD by her counsel shri……………and CD has in consultation with Shri…………..fully examined and considered the same and has given her free consent to them.
TERMS OF SETTLEMENT
Now this Deed Witness and the parties are as follows :
(1) AB, EF and GH shall be absolute owners of the properties mentioned in Schedules J, K and L respectively;
(2) CD shall be owner of the property mentioned in Schedule M for life and shall have no right to alienate except with the consent of AB, EF and GH or in the case of death of either of them, with the consent of the survivor of survivors and of the heirs of the deceased, and on the death of CD, the property shall devolve upon AB, EF and GH or their respective heirs in equals shares;
(3) The property mentioned in Schedule N shall be set apart for the upkeep and other expenses of the temple of…………..at………..which was built by XY deceased and shall remain in possession of GH in trust for this purpose. GH will apply the whole of the income of the property after deducting. Government revenue, cesses, taxes and expenses of collection, on the upkeep of the temple and other necessary expenses in connection with the temple. After the death of GH, his eldest male heir and after him his eldest male heir and so on shall be the trustee provided he is able and willing to act as such trustee.
IN WITNESS WHEREOF the parties have signed on the date first above written in the presence of following witnesses
Witness
(1)
(2)Signature
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