What are the Disadvantages of HUF?

Given below are some of the major disadvantages of Hindu Undivided Families (HUF). 

• In an HUF, all he family members get equal rights on the family assets, which can further lead to many consequences while distributing the assets.
• There is a very complex process for closing an HUF because it includes many legal and logistical challenges.
• Now, most of the families are shifting from joint families to nuclear families, which results in less importance to the HUF, and cases arising with situations like disputes and divorces are also complicating this situation even worse. 

Here are some of the disadvantages of the HUFs: 

• HUF applicant can only be documented by the income tax officials when there is some kind of money-spinning asset you get as a gift from a member of the HUF or a close relative. 
• The Karta of the HUF cannot gift HUF property apart from female members. 
• Every coparcener has an equal right on the property and cannot transfer or sell individually. 
• HUFs are not allowed to be a partner in any of the companies.