Last week, Parliament passed the Succession Bill, 2021, prohibiting the transfer of movable property contained in the principal residential holding, such as belongings, from being transferred by way of a gift in contemplation of death.
The Bill was presented in the House by the Legal and Parliamentary Committee chairperson Robinah Rwakoojo.
The House, chaired by Deputy Speaker, Anita Among, agreed to amend section 179 of the Succession Act to exclude movable property in the residential house of the intestate from being given away in form of a gift.
However, it was agreed that any gift beyond Shs500,000, it should be in writing.
It was further agreed that in case the donor recovers from his illness, and changes his/her mind over the gift, he/she may redeem the gift within six months of the recovery.
Section 179 of the Succession Act makes provision for property transferable by gift made in contemplation of death and allows a man to dispose of, by gift made in contemplation of death, of any movable property, which he could dispose of by will.
To relieve relatives from the burden of paying debts left behind by the deceased, the Bill states that debts incurred by the deceased against the principal residential property or any other residential property during marriage without the written consent of the surviving spouse shall be void and excluded from payment from the estate of the deceased person.
The Bill also prohibits a person from acquiring an interest in the estate of the intestate on behalf of the beneficiaries for the services rendered.
The Succession Bill was first debated and passed by Parliament in April 2021, but in August 2021, President Yoweri Museveni declined to sign it into law. He returned it to Parliament for reconsideration.
