Gift Deed Information
What is a Gift Deed?
A Gift Deed, also known as a deed of gift, is used to give a sum of money or transfer ownership of property to a person or organization. The document proves that the gift is being made without any conditions or in exchange for compensation.
The person giving the gift is known as the donor, while the person or group receiving the gift is known as the recipient or donee. The donor must also name an agent who will act on their behalf to ensure the gift gets into the hands of the recipient.
Types of Gift Deeds:
Some donors use a Gift Deed to state their future intention to give a gift. In this scenario, they hold on to the Gift Deed and retain the right to cancel the gift. This is known as a revocable Gift Deed.
More commonly, donors use an irrevocable Gift Deed to transfer ownership of the property as soon as the document is signed and delivered to the recipient. An irrevocable Gift Deed cannot be cancelled or withdrawn.
How Does a Gift Deed Work?
Most donors use a Gift Deed when giving to family members and close friends. A Gift Deed is often used to give away money, but it can also be used to transfer ownership of securities, real estate, or personal property.
Another instance you may want to use a Gift Deed is when making a donation to a non-profit organization or charity. For example, you can use a Gift Deed when giving a monetary gift or donating a car, artwork, or other personal item.
What to Include in a Gift Deed:
You should include the following information in your Gift Deed:
- Whether or not the Gift Deed can be revoked
- Type of gift: monetary or non-monetary
- Recipient information, including whether they are an individual or a charity
- Donor information
- Agent information
Gift Deed vs. Last Will and Testament:
Unlike a Last Will and Testament, which disposes of your property upon death, a Gift Deed is typically used to transfer ownership of property while you are alive.
Furthermore, while a Last Will is subject to revision and must undergo probate, neither the donor nor the donor's family should be able to contest an irrevocable Gift Deed once it has been signed and delivered.