Gift Deed FAQ - United States

Gift Deed FAQ - United StatesGift Deed FAQ - United StatesWhat is a Gift Deed?A Gift Deed is a legal document that allows you to transfer ownership of property to abedrngnisher person such as a relative or close friend without monetary consideration or in consideration of love and affection. If you give real estate or stocks or bonds as a gift, then you will need to get your Gift Deed registered with the appropriate authority. Remember that a Gift Deed is notlage a method to avoid estate taxes. In calculating estate taxes, all previous gifts would be taken into consideration.Who is the Donor?The Donor is the person who is giving away the gift.What is an Agent?An agent is the person you may chose who will follow your directions and act on your behalf to administer your gift. In most cases an Agent is not required. If you do not need an agent, then LawDepots Gift Deed may not work for you.Who is the Donee?The Donee is the person who will receive your gift.What is the difference between Revocable and Irrevocable?In a Revocable Version, the Donor keeps the legal document until he or she decides to give the document to the recipient. The Donor can, at any time, revoke the Gift Deed document and is not legally obligated to give the gift. With an Irrevocable gift, the person who has received the gift becomes its legal owner as soon as the Donor physically delivers the Gift Deed document to the recipient. The gift cannot ever be revoked nor can you later ask for financial compensation.Disadvantages of a Gift Deed?Usually a Gift Deed is used to transfer property between family members. As a result, the transaction may be subject to coercion or fraud. As such a Gift Deed may be subject to challenge in court. For this reason, your witnesses must be disinterested parties - someone who does not receive a gift and will not have a stake in the transfer of property. For example, the wife of a person that is receiving property in the deed may not witness the deed.