What are the Property Rights of Minor Children in India

Property ownership/transfer by minors in India is governed by a variety of laws including the Transfer of Property Act, 1882, Registration Act, 1908, and Hindu Succession Act, 1956, as amended in 2005. 

These laws recognize that a minor has limited legal capacity to hold or manage property, while also safeguarding their inheritance rights until they are major. In this guide, we explore the rights of minor children in ancestral and self-acquired properties, and clarify the role of guardians, legal restrictions, and relevant court rulings.

Can Minors Own Property?

Under the Transfer of Property Act, 1882:

• A minor cannot enter into a contract.
• Therefore, a minor cannot buy or sell property, as contracts with minors are void.
• However, a minor can receive property as a gift.
  • In such cases, the minor becomes a donee, but not a signatory to the deed.

• The gift deed must be executed by the donor, not the minor.
• Any property received by gift will be legally owned by the minor, but it must be managed by a legal guardian.

 Legal Restrictions on Property Registration by Minors

 Under the Registration Act, 1908:

• A minor cannot execute a deed.
• Property cannot be legally registered in the name of a minor if they are executing the document.
• Guardians or parents must act on behalf of the minor, but must not transfer or relinquish minor’s property without court approval.

Inheritance Rights of Minor Children

Under Hindu Succession Act, 1956 (amended in 2005):

• Both sons and daughters have an equal right to ancestral property by birth.
• Minor children are Class I heirs and have priority in intestate succession (when a person dies without a will).
• In case of self-acquired property, the parent can distribute it via a valid will to anyone, including or excluding children.
• If the parent dies without a will, children automatically inherit the property.

Note: Even if the minor owns the property, they cannot manage or sell it. A guardian must file a petition and obtain court permission to manage the property on the minor’s behalf.

Understanding Ancestral Property Rights

Under Hindu law, ancestral property is property inherited up to four generations from the male lineage. For property to be considered ancestral:

• It must remain undivided.
• The right to inherit arises by birth, not by will.
• Any property acquired from mother, uncle, or grandmother is not ancestral.

Key Conditions for Ancestral Property:

• Must be inherited from the father, grandfather, or great-grandfather.
• It should be older than four generations.
• Each coparcener’s share is considered their own upon partition.
• Property becomes self-acquired once divided.
• Voluntarily adding self-acquired property to ancestral pool makes it ancestral.

Role of Guardian in Minor’s Property

A minor cannot independently manage property.

• The guardian (natural or court-appointed) manages the property.
• If the guardian wants to sell, lease, or mortgage the minor’s property
  • They must seek permission from the District Court under Guardian and Wards Act, 1890.
• Any act against the minor’s interest (like relinquishing property) is not valid in law.

Key Court Rulings on Minor’s Property Rights

Case: T. Vijaya vs. Turkapalli Mahhiah (Telangana High Court)

• Issue: Whether a mother could relinquish ancestral property rights on behalf of her minor daughters in a panchayat settlement.
• Court’s Ruling:
  • The mother had no legal authority to give up property rights of her minor daughters.
  • Minor children’s rights to ancestral property cannot be waived or compromised by guardians.
  • Daughters had equal rights in ancestral property under the 2005 amendment.

This case reaffirmed that minors’ rights are protected, and any act contrary to their interest, even by a parent, is legally void.

Difference Between Ancestral and Self-Acquired Property

Type of Property	Inherited By Birth	Divisible Without Will	Can Be Gifted by Owner
Ancestral	Yes	Yes	No (must follow legal succession)
Self-Acquired	No	No (unless intestate)	Yes (via will/gift)

Common Misconceptions

• Myth: Minor children can sell gifted property.
  • Truth: They cannot sell without court permission.
• Myth: A parent can relinquish their minor child’s share.
  • Truth: This is illegal and invalid without judicial approval.
• Myth: Only sons have birthright in ancestral property.
  • Truth: After the 2005 amendment, daughters have equal rights.

Conclusion

Minor children enjoy strong legal protection in matters of property under Indian law. While they cannot enter into contracts or sell property, their ownership rights especially in ancestral property are secure by birth. Guardians play a crucial role in managing such assets, but their powers are limited and monitored by courts to prevent misuse.

One can talk to lawyers from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.

FAQs

1. Can a minor own property in India?

Yes, a minor can own property through gift or inheritance, but cannot manage or sell it independently.

2. Can a gift deed be made in favour of a minor?

Yes. A minor can be the donee, but the donor executes the gift deed. Guardians manage it on the minor’s behalf.

3. Can self-acquired property become ancestral property?

Only if it is voluntarily added to the ancestral pool by the owner through legal declaration.