Can daughter legally challenge gift deed from joint account?

Party A and B are family friends (no blood relation) for 30 years. Party B has helped Party A and her family extensively. Party A, now divorced and having one daughter, sells a jointly owned flat with her daughter. From the sale proceeds, Party A wants to gift ₹40 lakhs to Party B via cheque, through a gift deed. The cheque comes from a joint account of Party A and her daughter but is signed only by Party A. The gift deed does not mention or include the daughter’s consent. Can Party A's daughter legally challenge the gift deed in the future and demand repayment? What clauses or legal steps should Party B take to safeguard against such claims?

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Advocate By LEAD INDIA Answered: 21 May 2025

Since the flat was jointly owned, giving ₹40 lakhs from the joint account without the daughter’s written consent may raise future legal issues. Party B should ask for a signed declaration from the daughter stating she has no objection. Without it, the daughter can challenge the gift deed in court later. For further legal assistance contact us on our helpline number.
 

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