Lifetime Gifts Compared With Leaving an Estate

Many families plan to give a home to a child during their lifetime so that there is no dispute after death. The intention is sound, but it only works if the registration step is completed.

The basic difference

A hibah is a gift made while the giver is alive. An estate is what is distributed after death through whichever route applies. The practical difference is timing, and who carries the work.

Why registration decides everything

For land, ownership follows the register. A gift document that is signed but not followed by a registered transfer does not change the registered proprietor.

That means when the giver dies, the property is still in their name and forms part of the estate, even though the family believed it had been given away. We see this, and it is difficult to unwind after a death.

What to think about before giving

• Whether the giver still needs the property for a home or for income
• The effect on other beneficiaries, particularly where only one child receives
• Whether the property is still charged, since the bank’s consent is needed
• Restrictions on the title requiring authority consent
• The stamp duty treatment that applies to transfers between close family

The steps that make it effective

For land the steps are the same as any transfer: the transfer documents are prepared, stamp duty is paid, any required consents are obtained, and the transfer is registered at the land office. Only on registration does the recipient become the registered proprietor.

Frequently asked questions