Can a gift be made for life interest?

Gift for life interest is one which validity is only for the life time of the donee. The validity of the life time interest remains valid until the donee die. When the donee die the gift will terminate to the donor’s heirs. If the donor has no legal heirs then the property will go to the state, state will acquire the property according to State Acquisition and Tenancy Act. The donee is able to consume the gifted property before his/her death. The legal heirs of the donee will not inherit the gifted property. Life interest gift directly means that the donor allows the donee to consume the property until he/she die not after then. The legal heirs of the donee are not able to claim for gifted property.

A gift of life interest is valid. It does not become automatically enlarged into a gift of corpus of the property absolutely. A life interest estate implies the transfer of the corpus of the property to a certain person with certain limitations as to its use and alienation. In this technical sense, a life interest estate has been declared by the Privy Council in Sardar Nawazish Ali Khan’s case to be unknown to Mohammedan Law. But life interests are valid and can be lawfully created.

According to the decision of the Privy Council in Amjad Khan Vs Ashraf Khan, a gift under Muslim law of a life interest is valid and such life interest is not enlarged into an absolute estate.

A gift for life interest may impose some restrictions upon the donee such as; restrictions on transfer or alienation of property or restrictions on use of the property.

However, life interests are recognized and regarded as valid under the Muslim law such interests can be created in the following ways;-

1. Gift by private or family wakfs,

2. Gift by family agreements,

3. Gift by will.

Written With The Help Of Refference Book:

Mulla’s Principles Of MAHOMEDAN LAW (19^th Edition)

Written By: M. Hidayatullah & Arshad Hidayatullah (India).

Text Book Of MOHAMMEDAN LAW (23^rd Edition)

Written By: Aqil Ahamad (India).

MUSLIM LAW (17^th Edition-2014)

Written By: Syed Khalid Rashid.

Revised By: Prof. V. P. Bharatiya (India).