A Family Settlement Deed (FSD) is an agreement signed throughout the probate or trust administration by means of all of the heirs and people receiving actual estate or non-public property from a property. The deed sets forth how a property's belongings ought to be disbursed in another way from how the deceased wanted it to head. Most of the time, a decedent may be probated precisely because it reads. Every so often it's miles available for the executor to have an FSD inside the executor's pocket, however.
A deed of settlement is preferable to litigation as it can serve as an economical alternative, both in terms of money and time. Furthermore, it can help the concerned parties avoid the publicity that is usually entailed when one visits the court. It also provides each of the parties, subject to the dispute, the scope for negotiation through a systemic presentation of their interests and expectations from the possible settlement.
A deed of settlement can pertain to a wide range of conflicts. This includes unresolved court cases, movable and immovable assets, payments, and the like. A deed of settlement between brother and sister residing abroad falls under the category of a family settlement deed and only the best NRI lawyers in India for family matters are able to handle this. Such an agreement usually caters to the mutual resolution, amongst family members, of how some particular family asset (usual property) is to be distributed between them. Apart from immovable assets, a family settlement deed between brother and sister residing abroad can also pertain to movable assets like jewellery, shares, and the like. Such a deed can also pertain to cash deposited in banks.
For a family settlement deed between brother and sister residing abroad to be valid, it must adhere to certain formalities with respect to its content and legitimation. The deed must compulsorily mention, in specific detail, the parties that are subject to the settlement. It should also provide an exposition of the origin of the dispute and the relation between the concerned parties. The deed can only be declared valid if it has the signatures of all the concerned parties, in the presence of at least two witnesses, after a clear statement of the provisions of the agreement. In the case of a deed of settlement between brother and sister living abroad (NRIs), the formalities can be catered to by an attorney-in-fact as appointed through a Power of Attorney letter. If the deed of settlement pertains to the allotment of property, it will only be considered valid when provided in written form. Furthermore, in the case of immovable assets, the deed has to be duly registered at the office of the Sub-registrar of the area where the property is located. It is also compulsory to pay a stamp duty that is proportionate to a specified percentage of the value of the concerned property.
A deed of settlement between brothers and sisters residing abroad, i.e. NRI siblings, can be executed at their country of residence with the help of the best NRI legal services. In the case of a settlement deed pertaining to the allotment of property, the stamp duty has to be paid in India, within a span of three months post receipt of the executed deed in India, even if the deed is executed abroad. In the case of a deed of settlement pertaining to immovable assets, the deed must also be compulsorily registered within four months from the date of execution. In the case of the deed having been executed abroad, the span of four months is considered from the date when the executed deed was received in India. For the purpose of catering to these formalities, NRI citizens can appoint a specific individual through Power of Attorney to take the necessary steps on their behalf. Post successful completion of these formalities, the executed deed of settlement stands authenticated.
A valid deed of the settlement must compulsorily furnish proof of the mutual consent of all the concerned parties. The signatures, in the presence of witnesses, of the concerned parties, serve as the necessary proof. Such consent must not be elicited through underhanded tactics such as coercion, fraud, or misrepresentation. A party to a settlement can file a suit for cancellation of the existent settlement by citing such reasons as the underhanded tactics mentioned above. The suit would be heard and decided upon by a court post-judgment of its veracity. Another scenario wherein a deed of the settlement would stand invalidated, or canceled, is in the instance of improper execution or even lack of representation. In a case of a family settlement deed between brother and sister, the credibility of the settlement can be annulled if the deed lacks the proven consent of one or more of the concerned parties. Finally, a family settlement deed can be canceled if all the parties subject to the deed agree to do so through mutual consent.
A deed of cancellation would have to be executed towards such an effect. Furthermore, if a deed of settlement is against the established laws of the land, impedes on statutes laid down through an Act of Parliament, or serves to conceal criminal activity, then the family settlement deed stands invalidated.