What is a Gift Deed?
A Gift Deed or a Deed of Gift is a document that transfers property from one person (the ‘gifter’ or the ‘donor’) to another individual or an organisation(the ‘recipient’ or the ‘donee’) as a gift. This means the gifter does not require money or any sort of compensation as a payment from the recipient for the property and for the deed to be legally binding, both the parties must sign. It is commonly used but not limited to amongst family members wanting to transfer properties to other family members or individuals donating to charities.
Features of a Gift Deed?
- The names and details of the donor/gifter
- The names and details of recipient
- Description of what is to be gifted
- Assurances and conditions stipulating the recipient as the sole owner
- Signatures from both parties
What Property Can be Given Under a Gift Deed?
Under a Deed of Gift, a donor can gift:
- Real estate (land and properties)
- Material possessions
Why a Deed of Gift?
A Deed of Gift provides definitive clarity on who owns the property and provides legal evidence of the direct transfer. A Deed of Gift cannot be revoked after the successful transfer of the gift from the donor to the recipient, but anytime prior to the transfer, a Deed of Gift can be revoked by the donor. It is also possible for a Deed of Gift to be challenged in a court of law.
If you would like further information or advice on enacting a Gift of Deed, please reach out to us through the contact form or by calling us on 1300 377 997.