We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is a Gift Deed?

Nicole Madison
Updated: May 16, 2024

A gift deed is an official legal document used to give a gift of property or money to another person. It transfers the money or ownership of property from the recipient, without the exchange of money or another type of property. The transfer also occurs without requiring the recipient to work for what he receives. Property transferred in this manner is usually given out of the love and affection the giver has for the recipient.

The person who creates and executes a gift deed to transfer money or property from himself to another person is called a donor. Though he may own 100% interest in the property he intends to transfer this way, his signature isn’t enough to make the document legal. Instead, the donor must sign the form and have it witnessed. The number of signatures needed may vary from place to place, but many jurisdictions require two witnesses.

The people who sign as witnesses have to be disinterested parties, which means that they cannot have a stake in the transfer of the property. If the person stands to benefit or take a loss because of the transfer of the property, he cannot be considered disinterested and cannot act as a witness. For example, the wife of a person who will receive property may not be permitted to witness the document, as she may benefit from the gift. There may be other requirements set for witnessing the gift, depending on the jurisdiction in which it is executed.

Sometimes, people create revocable gift deeds. In such a situation, the donor drafts the document but does not give it to the recipient right away. Instead, he holds onto the document until he feels ready to give it to the recipient. In such a case, the donor may revoke the gift if he sees fit to do so, and he does not have to deliver or hand over the property or money to the recipient, even if the deed is complete, signed, and witnessed.

A donor cannot change or revoke an irrevocable gift deed. In this situation, the owner drafts the document and has it signed and witnessed in accordance with his jurisdiction’s laws. Once he gives the document to the recipient, the recipient takes immediate legal ownership of the gift. The donor cannot change his mind and reclaim the money or property he has transferred in this manner.

MyLawQuestions is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Nicole Madison
By Nicole Madison
Nicole Madison's love for learning inspires her work as a MyLawQuestions writer, where she focuses on topics like homeschooling, parenting, health, science, and business. Her passion for knowledge is evident in the well-researched and informative articles she authors. As a mother of four, Nicole balances work with quality family time activities such as reading, camping, and beach trips.
Discussion Comments
By anon312715 — On Jan 08, 2013

I did a royalty gift deed to my children. Do I have to pay a gift tax on that? Only one property at the time was producing any royalties.

By Alchemy — On Feb 20, 2011

@ Anon74645- It really depends on the amount or value of the quick deed and the state. The general gist of the law is that anything under $10,000 to $12,000 in value will not be taxed to either party. When a tax is levied, the gift tax is levied on the donor, not the recipient. I have had family members give me cash for school (less than $10,000) and neither party had to pay tax. I did have to report the income on my financial aid forms however. If you are considering a large gift, you should probably consult a lawyer in your area just to be sure that all tax laws are followed. You may also find that a lawyer can help you structure the gift to minimize the amount of taxes paid.

By anon74645 — On Apr 03, 2010

If a person gives a gift deed, is there a tax for the person receiving the deed?

Nicole Madison
Nicole Madison
Nicole Madison's love for learning inspires her work as a MyLawQuestions writer, where she focuses on topics like...
Learn more
MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.

MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.