A properly executed Gift Deed transfers from the owner (donor), all the rights and obligations relating to a property, to the receiver (donee) who becomes the absolute owner of the property. A gift deed must clearly state the name of the owner and the receiver, as well as a description of the property gifted. In the case of land or property, it may be necessary to have a Professional Land Surveyor prepare legal descriptions. The professionals at Bedrock can provide you with the necessary legal descriptions of a parcel or property to file a gift deed document for that property. Through a gift deed, ownership of property — of either monetary or sentimental value — may be transferred to a relative or close friend without charge or consideration. A gift deed is valid only if it is given out of love and affection, without any consideration in return by one family member to another. When real estate is given as a gift, it must be properly registered with the appropriate authority. A gift deed is not a method to avoid estate taxes.
A gift deed may be either revocable or irrevocable. When a gift is revocable, the donor holds the legal document until and only until they decide to give it to the giftee. They are not legally obligated to give the gift and may rescind it at any time, for any reason. In an irrevocable gift, the person who has received the gift becomes its legal owner as soon as the donor physically delivers the gift deed document to the recipient. The gift cannot ever be revoked nor can the donor later ask for financial compensation.
A gift deed may be either revocable or irrevocable. When a gift is revocable, the donor holds the legal document until and only until they decide to give it to the giftee. They are not legally obligated to give the gift and may rescind it at any time, for any reason. In an irrevocable gift, the person who has received the gift becomes its legal owner as soon as the donor physically delivers the gift deed document to the recipient. The gift cannot ever be revoked nor can the donor later ask for financial compensation.