Property gifts to retain lifetime use rights under proposed law

The government has moved to amend The Transfer of Property Act, 1882 to protect parents, grandparents and spouses who gift property to close relatives by allowing them to retain the right to use and enjoy the property throughout their lifetime.

The proposed change comes through the Transfer of Property (Amendment) Bill, 2026, which has been placed before the Jatiya Sangsad to address concerns over donors losing access to their homes and other properties after transferring them to family members.

Law, Justice and Parliamentary Affairs Minister Md Asaduzzaman introduced the bill on August 27, the opening day of the third session of the Jatiya Sangsad.

The bill was subsequently sent to the relevant parliamentary standing committee for scrutiny. Deputy Speaker Barrister Kaysar Kamal asked the committee to submit its report within two working days.

At the heart of the proposed legislation is the principle that transferring property to secure a family’s future should not deprive a donor of access to their home, homestead or established way of life.

Existing legal mechanisms allow property to be gifted, but The Transfer of Property Act, 1882 contains no specific provision enabling a donor to transfer property while retaining a lifetime right to use and enjoy it.

The proposed amendment seeks to fill that legal gap, particularly for elderly parents who may transfer property to their children or other close relatives while needing continued security and access to the property.

The bill proposes inserting new Sections 122 (Ka) and 122 (Kha) into The Transfer of Property Act, 1882.

The provisions would recognise a property transfer in which the donor retains the “right to use and enjoy the property for life” as a distinct mode of transfer.

Under the proposed provisions, parents could gift property to their children or grandchildren. Children and grandchildren could similarly gift property to their parents or grandparents.

Comparable transfers would also be permitted between spouses.
For immovable property, however, such gifts would have to be made through a registered deed.

The key protection under the proposed law is that gifting property would not automatically end the donor’s right to use and enjoy it during their lifetime.

For example, if a father gifted his only house to his child while retaining a lifetime right to use and enjoy it in the deed, he could continue living in and using the house until his death.

That right would remain valid even if the child died before the father.
The proposed law would also allow the lifetime arrangement to be changed under certain circumstances.

If a genuine financial, medical, educational, family or other need arose, the donor and recipient could mutually agree to modify, revoke or otherwise manage the lifetime right through a registered deed.

Where either party was a minor, missing, mentally incapacitated or otherwise legally incapable, changes could be made with approval from the District Judge.

In such cases, the court would consider whether the concerned persons had been duly notified, whether necessary inquiries had been conducted and whether the application had been made in good faith.

The proposed amendment is aimed at addressing uncertainty faced by property donors who want to transfer assets to close family members while retaining access to their homes and maintaining security during their lifetime.

If enacted, the new provisions would provide a specific legal framework for such transfers between specified blood relatives and spouses.