New Bill Proposes Lifetime Use of Property After Donation

The government has moved to amend the law to allow people to retain the right to use and occupy property they donate to their children or close relatives for the rest of their lives.

The proposed Transfer of Property (Amendment) Bill, 2026, was placed in Parliament on August 27 by Law, Justice and Parliamentary Affairs Minister Asaduzzaman. The bill has since been sent to the relevant parliamentary standing committee for scrutiny.

If passed, the amendment would introduce new provisions allowing donors to retain lifetime possession and use of donated property when transferring it to specified close relatives, including between parents and children, grandparents and grandchildren, and spouses.

Under the proposed law, donations of immovable property would have to be made through a registered deed. However, the donor’s right to use and enjoy the property would not automatically end after the transfer. If lifetime possession is specifically reserved in the deed, the donor could continue using the property until their death.

For example, a father could donate his house to his child while retaining the legal right to live in and use the house for the remainder of his life.

The bill also proposes that if the recipient dies while the donor is still alive, the property would pass to the recipient’s legal heirs. However, the donor’s lifetime right to use and occupy the property would remain unaffected.

The proposed provisions would also allow changes to or withdrawal of the arrangement in certain circumstances, including genuine financial, medical, educational or family needs, provided both parties agree and execute a registered deed.

Special provisions have been proposed for cases where either party is a minor, missing, mentally incapacitated or otherwise legally incapable. In such situations, necessary action could be taken with approval from a district judge.

The government says the new system would not restrict existing methods of property transfer, including ordinary gifts and hiba under Muslim law. Instead, it would create a separate legal mechanism applicable equally to people of all religions.

The proposed amendment aims to protect elderly parents and other donors from losing access to their homes or property after transferring ownership to their children or close relatives.

The bill is currently under review by the parliamentary standing committee. If passed, it would provide donors with legal protection to retain lifetime use and possession of property even after ownership has been transferred to their successors.