What is a deed of gift?

A deed of gift is a legal document that transfers ownership of property from one person to another as a gift without any monetary exchange. It is a voluntary act of giving, and typically involves personal property such as artwork, antiques, jewelry, or other valuable items.

In order for a deed of gift to be legally binding, it must be executed in writing and signed by both the gift giver (the donor) and the gift receiver (the donee). The deed of gift must also specify the nature and extent of the property being transferred, as well as any conditions or restrictions that may apply to the gift.

Once a deed of gift is executed and recorded, the gift becomes irrevocable, meaning that the donor cannot take back the gift once it has been given. Additionally, the donee becomes responsible for any taxes or fees associated with the property, such as inheritance tax or transfer fees.

Deeds of gift are commonly used in estate planning to help reduce the taxable value of an estate, as well as to transfer sentimental or valuable objects to family members or loved ones. They are also used in charitable giving to legally transfer property to a charitable organization.

Overall, a deed of gift is a powerful legal tool that allows individuals to transfer ownership of property to others without any financial exchange.