After Gifting Property to Your Child, Can You Still Live There for Life?
For many parents, transferring a house, land or other property to their children during their lifetime is an act of trust, family planning and financial security. But one important question has often remained: after transferring ownership, can the parent still retain the right to live in, use or enjoy the property during their lifetime?
Bangladesh’s recent amendment to the Transfer of Property Act, 1882 has introduced an important legal mechanism addressing this issue.
A New Form of Property Gift
The Transfer of Property (Amendment) Act, 2026 has inserted Sections 122A and 122B into the Transfer of Property Act, 1882.
Under Section 122A, a gift may be made while reserving the donor’s lifetime enjoyment or usufructuary rights over the property. This is a distinct form of property transfer recognised by law.
The provision applies to specified family relationships, including transfers between parents and children, grandparents and grandchildren, and between spouses. For immovable property, the lifetime right must be reflected through a registered deed as required by law.
What Does This Mean in Practice?
Consider a simple example.
A father owns a house and decides to gift it to his son during his lifetime. Under this new mechanism, the father may transfer ownership to his son while expressly reserving his lifetime right to use and enjoy the property.
In simple terms:
Ownership may pass to the child, while the donor’s lifetime enjoyment remains protected.
This demonstrates why three concepts should be considered separately:
Ownership ≠ Possession ≠ Right of Use or Residence
A person may become the legal owner of a property while another person may retain a legally protected right to use or enjoy it for life, where the law and the registered deed provide for such a right.
What If the Child Dies Before the Parent?
The law also addresses this situation.
If the donee dies during the donor’s lifetime, the property may pass to the donee’s heirs according to law. However, the donor’s reserved lifetime enjoyment right continues to remain attached to the property.
This can be particularly important for parents who want to transfer ownership to their children without giving up their own lifetime security in the property.
Can the Gift Be Cancelled Later?
Another important point concerns revocation or variation.
Under Section 122B, a gift made under Section 122A generally cannot be unilaterally revoked after registration. However, the donor and donee may mutually agree to vary or revoke the arrangement through a registered deed where there is a financial, medical, educational, family or other genuine necessity.
The law also provides a mechanism involving the District Judge in specified circumstances where the consent of one party cannot be obtained because of legal incapacity or other sufficient cause.
What Should Parents Consider Before Transferring Property?
Before signing a Gift Deed, parents should not focus only on the question of who will become the owner.
They should also consider:
- Whether they need a lifetime right of residence or use;
- Whether that right is clearly expressed in the registered deed;
- Who will have possession of the property;
- Who will receive rental income or other benefits, where applicable;
- What happens if the donee dies first;
- Whether the gift can later be varied or revoked;
- Whether the proposed transfer is consistent with other applicable laws and personal-law considerations.
Most importantly, parents should not rely solely on verbal promises such as, “You can live here for the rest of your life.”
If a lifetime right is important, the legal arrangement should be properly documented.
A Gift Is More Than a Change of Name
Property transfer is not simply about changing the name appearing on a document.
It may involve several separate legal interests:
Ownership — Who legally owns the property?
Possession — Who has physical control of it?
Residence — Who has the right to live there?
Use and Enjoyment — Who can use the property and benefit from it?
Future Rights — What happens after the donor or donee dies?
The new legal framework provides a specific mechanism for separating ownership from the donor’s lifetime enjoyment in eligible family transfers.
Final Legal Reminder
If you are considering transferring your property to a child, grandchild or spouse, do not ask only:
“Whose name will the property be transferred to?”
Also ask:
“What rights will I retain after the transfer?”
A carefully drafted and properly registered deed can be crucial in reducing uncertainty and preventing future disputes.
The exact legal consequences, however, depend on the nature of the property, the relationship between the parties, the wording of the deed and other applicable laws.
Know Your Rights. Protect Your Property. Protect Your Family.