All You Need to Know About Ancestral Property

In India, families have a lot of attachment to their ancestral property and it holds significant legal and emotional value. However, after the sad demise of your loved ones, this ancestral property falls under various rules and as an heir, you must know about the basic ancestral property laws and nature of this property to better deal with such circumstances and avoid disputes. Read this blog and gain knowledge about ancestral property meaning, types, its inheritance rules. We will also debunk the common myths related to such properties.

What is Ancestral Property?

Now let's begin the blog with what is ancestral property​? It is a legally recognised category of property inherited from your forefathers up to four generations. A thing to remember is that it is not divided and is passed down in an undivided family, which gives all legal heirs an equal right to property ownership.

Types of Ancestral Property

We can divide the ancestral property into various types depending on its origin and manner of inheritance.

Property Inherited from a Paternal Ancestor

This type of property refers to a property that is being passed down from the father, grandfather, or great-grandfather. It remains undivided within the family and all male/female heirs have equal rights on it.

Property Inherited from a Maternal Grandfather

It refers to an ancestral property received from the maternal grandfather and is usually considered personal inheritance rather than ancestral unless specified otherwise in legal documents.

Share Allotted on Partition

When an ancestral property is divided, the share received by each member continues to hold ancestral status for future generations.

Property Obtained by Gift or Will from a Paternal Ancestor

It means if a property is received as a gift or through a will from a paternal ancestor, it is treated as personal property unless mentioned otherwise.

Accretions

Additional assets or properties acquired using income from ancestral property also qualify as ancestral and must be shared among legal heirs.

Also Read: What is a Relinquishment Deed? Meaning, Format, Benefits and Procedure

Distinction Between Ancestral and Inherited Property

Let’s break down the major difference between ancestral property and inherited property:

How Many Generations Can Claim Ancestral Property?

Ancestral property can be claimed by up to four generations of male lineage. It includes the father, grandfather, great-grandfather, and great-great-grandfather’s heirs. After this, the property loses its ancestral nature.

Women's Rights on Ancestral Property

Women now have equal ancestral property rights under the Hindu Succession Act.

• It is important to note that daughters now have the same rights as sons to ancestral property.
• If you are a married daughter in the family then you are allowed to retain your share.
• In case the daughter passes away, then her legal heir can claim the share.
• As a woman, you can also demand the partition of ancestral property.
• Women are also allowed to transfer or sell their shares after inheritance.

Also Read: What is Leasehold Property? Everything You Need To Know

How is Ancestral Property Inherited?

• Ancestral property is inherited by all legal heirs equally.
• It cannot be given exclusively to one heir.
• Heirs can claim their share at any time.
• Coparceners can demand partition.
• The property remains undivided until a partition is requested.
• After partition, each share becomes personal property.

Guidelines for Partitioning Ancestral Property

• Partition can be initiated by any legal heir.
• It can be done mutually or through court intervention.
• Shares are determined equally among heirs.
• A legal document must be created and registered.
• The partition deed must be signed by all heirs.
• In case of disputes, mediation or legal action may be required.

Key Considerations Before Selling Ancestral Property

Selling ancestral property involves multiple legal and financial considerations to ensure a smooth transaction.

• Consent from all co-owners: Since ancestral property is jointly owned, all legal heirs must provide documented consent for the sale to be valid.
• Legal documentation: Ensure property papers, title deeds, and ownership records are updated and verified to prevent legal challenges.
• Clearance of any disputes: Any pending legal disputes or encumbrances must be resolved to avoid complications during the sale process.
• Verification of buyer’s interest: The buyer must be aware of the property's ancestral nature and legal complexities before proceeding with the purchase.
• Proper valuation: Hiring a certified property evaluator helps ensure the property is sold at a fair market price.
• Tax implications: Capital gains tax and other financial obligations should be reviewed to understand the tax liability.
• Mode of sale: Selling through brokers, online platforms, or direct negotiations affects transaction ease and costs.
• Due diligence: Conduct thorough background checks on the buyer to avoid fraud and ensure financial credibility.
• Encumbrance certificate: Obtain an encumbrance certificate to confirm that the property has no legal or financial liabilities.
• Mutation process: Complete the mutation process post-sale to transfer ownership legally and update land records.

Also Read: Understanding Immovable Property: Types, Rights, and Differences

Common Myths About Ancestral Property

Here, let’s break the common myths around ancestral property.

Myth: Only male heirs can claim ancestral property.

Truth: The Hindu Succession Act was amended to grant daughters equal rights to ancestral property, ensuring gender equality in inheritance laws.

Myth: Ancestral property cannot be sold.

Truth: Ancestral property can be sold, but it requires the consent of all legal heirs to ensure a lawful transaction.

Myth: If a father gifts ancestral property to one son, others lose their claim.

Truth: Ancestral property cannot be gifted by a single heir. All legal heirs must consent before any transfer.

Myth: If a property is inherited, it automatically becomes ancestral.

Truth: Only property passed down undivided across four generations qualifies as ancestral property.

Myth: Partition ends all rights to ancestral property.

Truth: Partition grants individual ownership, but each heir retains legal rights over their allotted share.

Conclusion

For Indian families, it is very helpful when you are all aware of the ancestral property laws. This way you are always assured that your rights are protected, and in case of any dispute, you are wise enough to protect your ancestral property. If you need financial assistance to safeguard your property, then use a LAP or Loan Against Property from Hero FinCorp and easily retain ownership of your property.

Also Read: How to Calculate the Market Value of Your Property in India?

Frequently Asked Questions

1. How is ancestral property divided?

Each legal heir receives an equal share through mutual partition or court intervention.

2. How to prove that property is ancestral?

Documents tracing ownership back four generations establish ancestral status.

3. When can a daughter not claim her father’s property?

If the property was self-acquired and gifted or willed to someone else.

4. Can a father give all his property to one child?

Yes, if it is self-acquired property, but not if it is ancestral property.

5. Can I give deeds to my ancestral property?

No, ancestral property requires consent from all legal heirs.

6. What is the new law for daughters in father’s property?

The 2005 amendment grants daughters equal rights to ancestral property.