It’s always a happy occasion when you receive a gift from someone. But a gift of great value such as property, art masterpieces, or car can be overwhelming and too good to be true. It is possible though. And to formalize the gift received, the one who gave it can make a Gift affidavit to prove and attest that it wasn’t a loan nor a financial transaction. Read More
You can make a Gift Affidavit if you want proof that:
Learn more about Gift Affidavit and how to write this document below.
A Gift Affidavit is a legal document that serves as a proof that a property or an item of great value was given to another person as a gift. In a legal sense, the term “gift” is used to refer to a definite and voluntary transfer from one person to another. This means that the ownership of the property is transferred without monetary payment or expecting something in return. It is used for various reasons, often as proof of income or for vehicle transfers to qualify for tax exemptions. The person or party giving the gift is called a “donor”, while the one on the receiving end of the gift is called the “donor.”
Making a gift affidavit is a simple task you can either fill out a form or write up a one-page document. In situations where a form is not available, a simple one-page letter that identifies the giver, the recipient, and the nature of the gift is just enough.
Here are five simple steps on how to write a Gift Affidavit.
When you are given a simple birthday present, it’s doubtful that you would need a Gift Affidavit for it. However, if the gift is a car, a land property, or a Van Gogh, then a Gift Affidavit might be necessary. Gifts with high monetary value may qualify for tax exemptions and even in situations where you would need to sort out ownership of the property.
In order for a transfer of ownership to qualify as a gift, the transaction must satisfy all elements of proof which are:
All of these requirements must be met in order for the transfer to be classified as a gift, pending state laws.
Like any other affidavits, biographical information about the giver or the affiant should be included in the document. It should contain the affiant’s legal name, date of birth, and current residential address. It should also state that all facts written in the affidavit are true and correct and must be sworn or affirmed by the law.
Aside from the affiant’s personal information, other details in the affidavit must include the recipient’s full name and address, the gift, date it was given or received, and the purpose. It should also indicate if the gift is a one-time thing or a recurring event.
After drafting your document, review its contents before bringing it to the court office for notarization. To be considered and be covered by state laws, the document needs to be signed by the affiant (Donor), recipient (Donee), and it should be done in the presence of a notary public. In some states, remote notarization is acceptable, so check with your state laws if that is something allowed in your area.
Basically, any property given or transferred voluntarily qualifies as a gift. Various assets such as cash or “in-kind” donations such as real estate, inventory, stocks, bonds, etc. can also be qualified as gifts. In essence, if a person’s property is transferred to another person without expecting in return, monetary or services, it is considered as a gift.
Giving or receiving a gift can be a formal undertaking especially if the asset being given is of great value and worth a large amount of money. An estate lawyer in your area can provide you with the assistance that you need especially if there are disputes that arise over it. In these cases, it may be necessary to retain a lawyer should there be a need to file for a lawsuit.
It is required that the Donor must have the legal capacity to make a gift. With that said, the Donor must be of legal age (18 years or older), and must be in the right mental state and understands that they are making a gift. All these criteria must be met by the Donor in order for a valuable gift to be considered as such.
For the Gift Affidavit to be binding, the Donee must also be willing and voluntarily accept the gift without coercion. They must affirmatively accept the gift otherwise it will be revoked up until acceptance. It will not qualify as a gift if the Donee accepted it under duress or was heavily influenced by the Donor.
Gift Affidavits are formal acknowledgements that something was given as a present. If the present is of great monetary value, the affidavit you created can be used for both the Donor and the Donee for tax exemption purposes especially if it was made to qualified entities like charitable organizations. So, for large gifts or vehicles, use a Gift Affidavit as proof that it was a present.