What is Gift Deed?
All of us wish to gift something to our loved ones. Though gifting to our relatives is common, but when the gift consists of a property or a part thereof, understanding its legal process is very essential.
A Gift deed is a legal document that defines the transfer of gift from donor (owner of property) to donee (receiver of gift) without any exchange of money.
In simple terms, a gift deed allows you to transfer ownership without any exchange of money.
Essential Elements of Gift Deed?
- Donor (owner of property) should voluntary gift the property
- Donee (receiver of gift) should be ready to accept the gift
- There should not be any money exchange
- The Gift should be in existence, future property cannot be gifted
Frequently Asked Questions:
Can Gift deed be revoked or cancelled?
The property once gifted to a person becomes his property permanently and the person making the Gift Deed cannot revoke the Gift once the document is properly executed.
Is Gift Deed required to be registered?
Gift of movable property (for eg., car, machine, gadget, goodwill etc) is not required to be registered but Gift of immovable property (for eg., land, flat, house etc) is compulsorily required to be registered.
Is Gift Deed and Will same?
No. Gift Deed comes into effect the very day it is made and Will comes into effect ONLY after the death of the person making the Will.
Can a minor Gift a property or accept gift?
Minor cannot gift a property but a minor can accept gift through a natural guardian.