Parents to keep lifetime rights to property gifted to children

The government is planning to amend the Transfer of Property Act to allow parents to retain full lifetime possession and use of property even after gifting or transferring it to their children.

The proposed amendment is intended to prevent elderly parents from becoming vulnerable after transferring their assets and is also expected to significantly reduce the number of family-related civil disputes over property.

Law Minister Md Asaduzzaman disclosed the plan while speaking to reporters at the Secretariat on Thursday (July 30).

He said that under the existing legal framework—including the Muslim law of Hiba (gift) and the Transfer of Property Act—parents lose ownership and control of property immediately after transferring it to their children.

If the children later fail to support or care for them, many parents are left financially and socially vulnerable in old age.

To address this, the government is considering incorporating the principle of usufruct rights (life interest), drawing on a landmark 1963 legal precedent.

Under the proposed provision, parents would retain the right to possess and enjoy the property throughout their lifetime, even after transferring ownership.

Under the proposed amendment, parents would continue to occupy and use the property for the rest of their lives. During that period, neither the parents nor the children would be able to sell or transfer the property without the consent of the other party.

The proposal also includes a provision for exceptional circumstances.

For example, if a parent urgently needs to sell the property to pay for medical treatment but the child refuses consent, the aggrieved party would be able to apply to the district judge.

After reviewing the circumstances, the district judge would have the authority to approve the sale or transfer if deemed justified.

The law minister expressed hope that the proposed reform would substantially reduce family disputes and civil litigation related to property.

“Wherever legal changes are needed to serve the public interest, the government will continue to take the necessary steps,” he said.