What is a gift deed?

A gift deed is an agreement that’s used, when an individual wish to gift his property or money to somebody else. It is often a moveable or immovable property that’s gifted voluntarily, from the donor to the donee. a present deed allows the landowner to gift the property to anyone and avoids any future dispute arising out of succession or inheritance claims. A registered gift deed is additionally evidence in itself and in contrast to within the case of a will, the transfer of property is instant and you’ll not be required to travel to the court of law for its execution and hence, it also saves time.

 

Gift Deed Format

Gift Deed

How to draft a gift deed?

A gift deed must include the following details:

    • Place and date on which the deed is to be executed.
    • Relevant information regarding the donor and the donee, such as their names, address, relationship, date of birth and signatures.
    • Complete details about the property.
    • Two witnesses to bear testimony and their signatures.
    • Thereafter, depending on the value determined by the state government, the gift deed must be printed on stamp paper after paying the required amount and the deed should be registered at the registrar or sub-registrar’s office.

Who can be a donor/donee?

  • A donor may be a one that makes the transfer of immovable property. a person who is of sound mind and is competent to enter into an agreement are often a donor. A minor can’t be a donor as he/she isn’t capable of getting into a contract.
  • A donee may be a one that accepts the gift/transfer made to him. A minor is often a donee however, the gift would need to be accepted by donee’s guardian on behalf of the donee. just in case of the onerous gift (gift attached with some conditions), a minor after attaining adulthood, can either accept the gift or return it.

(“If the donee accepts the gifts of which some bills are pending, then all the dues are going to be shifted on donee. for instance, if you gift a property to your relative and a bill of Rs. 1000 is due then after the gift is transferred, it’s your relative’s responsibility to pay the dues.”)

Steps involved in the drafting of Gift Deed

STEP 1: Draft a deed with the following essentials.

      • Date and Place where the deed is to be executed
      • Information about Donor and Donee like Name, Residential Address, Relationship among them, Date of Birth, etc.
      • Details about the property
      • Two Witnesses
      • Signatures of Donor and Donee along with the witnesses

 STEP 2: Get it printed on the stamp paper of appropriate value depending upon                        your state

 STEP 3: Get the deed registered at your registrar or sub-registrar office.

Documents required for Gift Deed registrations

After making sure that your Gift Deed is signed, attested by witnesses and you have paid the stamp duty and registration charges as per your state regulations. You need to carry a few other documents like –

    • Original Gift Deed
    • ID Proofs (Driver License, Passport)
    • PAN Card
    • Aadhar Card
    • A document like Sale deed to prove donor title to the Property
    • Other Agreements which you might have entered into in relation to property
    • The list is not exhaustive; you might need other documents like certificates relating to the value of your property depending on your state.

What can be gifted?

Anything which qualifies as gift must have following properties

    1. It must be well defined existing movable or immovable property
    1. It must be transferable
    1. It should exist today and should not be a future property

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