The SC, in N.P. Saseendran v. N.P. Ponnamma & Ors.,^[1] has re-affirmed the following principles for determining whether a document is a ‘gift’, ‘settlement’ or ‘will’:

i.    Every will has an element of a gift. However, in case of a will, the disposition is deferred until the death of the testator;

ii.   A voluntary disposition can transfer the interest in praesenti and in future, in the same document. Such document has to be treated as both, a settlement and a will, and the respective rights will flow with regard to each disposition from the same document;

iii.  The absence of consideration in a gift is the primary distinguishing factor from a settlement;

iv.   A gift is a gratuitous grant by the owner to another person; a settlement is based on mutual love, care, affection and satisfaction; while a will is a declaration of the intention of the testator to dispose of his property in a particular manner after the death of the testator;

v.    The nomenclature of an instrument is immaterial, and the contents of the document have to be read as a whole and understood, while keeping in mind the object and intent of the testator, to determine the nature of the document; and

vi.   In case there is any ambiguity in understanding the nature of the documents from its contents, the subsequent conduct of the executant must also be considered.

[1] N.P. Saseendran v. N.P. Ponnamma, 2025 SCC OnLine SC 626.