What is a valid ‘Gift DEED.

There are various legal modes of transfer of property; one of them is via a ‘gift deed’. So what is a gift deed – certain tangible, moveable or immoveable property can be transferred from one person to another, where the person who is giving is the ‘donor’ should comply with certain legal formalities. The deed document accounts for what and how much is being transferred and stands as a legal document accounting for the transfer.



Important things to know about Gift Deed

• Donor must be of contractual age as permitted by law
• Any Minor cannot be a donor or assign a gift deed.
• A Donee (receiver of the gift deed) can be a minor and the gift can be accepted on his behalf by a Guardian.
• The Guardian can act as the manager of the deed till the Donee is an adult.
• Onerous property cannot be given to a Minor.
• While framing of the gift deed, the Donor must be self willing to make the gift and not be pressurised in any manner.
• Similarly, when accepting the gift the Donee must willingly accept it, he also has the opportunity to reject the gift.
• The property being signed over must be an existing property owned by the Donor.
  • It can be any form of immoveable/moveable property, either land or automobile and can be claimed without any consideration clause of the future.
  • There must be no monetary consideration when a gift deed is executed, the Donee does not have to provide any benefit equivalent of the property, the transaction ceases to be a gift in such a case.

Two most important points to bear in mind are -

• The gift must be given and accepted during the lifetime of the DONOR.
• If the Donee dies, the gift is void.

A valid gift deed can be made only by a registered legal instrument body. If the property under question is not registered then the deed is considered invalid. All necessary property and other legal documents should be stamped and registered as required as well as attested by two witnesses.