What Is a Gift Deed?
A Gift Deed is a legal document upon which one person (a donor, a transferrer, or a grantor) transfers ownership of a property to another person (a donee, a recipient, or a grantee). The property is transferred as a gift and the donor does not charge the donee anything for it. The purpose of the deed is to document the voluntary act of giving a gift and the donor is doing it by their own choice.
Different types of property can be transferred with a Deed of Gift, however, they should be well defined, tangible, and exist as a transferable item. Gifting real estate ownership is also possible, but, in this case, the document requires registration under the law.
How to Get a Gift Deed?
Most individuals get their Gift Deeds from a family member or a close friend. In order to make it valid, a Gift Deed Form should meet certain stipulations. These can include the following:
- The document must be accepted by a donee during the lifetime of the donor;
- If required by law, the document must be registered, and the stamp duty must be payable;
- The Gift Deed should not be made by a minor. Even though minors can not make deeds, their legal guardians can accept them on a minor's behalf;
- The deed must contain special sections that make the document legitimate.
A Gift Deed format should include particular sections, such as:
- Title. The document should start from the title and the type of the deed. Mentioning whether the deed is revocable or irrevocable will help the parties understand how to work with the document.
- Parties. Here a filer must enter information about the parties involved, including their names, addresses, and positions in the deed.
- Transfer of Ownership. A giving party uses this section to express their will to voluntary, and by their own choice, transfer ownership of the property item they own to the receiving party.
- Object. In this part of the document, an applicant should give a full description of the item which will be transferred to the receiving party. Filers should name the item, and report its characteristics (if applicable). Depending on the type of item that will be gifted, the contents of this part may vary.
- Location of Gifted Property. If the object of the deed is real estate, then a filer should designate its address and specify its location in detail.
- Signatures. The document must be signed by a giving party and by a witness, which can be presented as a notary public.
Depending on the circumstances of the situation and the gift itself, parties can change the contents of the deed, and add more parts to it.
Check the other types of deeds, complete with downloadable forms and instructions:
- Beneficiary Deed;
- Survivorship Deed;
- Life Estate Deed;
- Transfer on Death Deed.