Gift Deeds Demystified: Common Myths and Realities

There are two types of gift deeds: "revocable" and "irrevocable," the former being the most typical. Revocable deeds of gift are used by donors to express their intention to make gifts in the future. Properties are transferred using a new type of deed of gift after it has been certified and delivered. It is thought to be irreversible. Gift deeds transfer real estate rights and give away money, stocks, or other assets. You can also make use of them when contributing to a nonprofit or philanthropic organization.

Things to be included in a Gift Deed

The two witnesses' signatures attest to the deed. It is necessary to specify the gift deed's execution location and time. In addition, information on the donor and the donee, such as names, residences, relationships, birth dates, and signatures, must be included.

Once the necessary funds have been spent, they must be duplicated into official documents and officially recorded at the registrant or sub-registrar's office.

What are the Advantages and disadvantages of Gift Deed?

The advantages of the Gift Deed are as follows:

• It is completed immediately.
• As gift deeds need to be recorded, they are less likely to be the subject of legal disputes.
• Deed transfers are often free of taxes for both the donee and the sender.

The disadvantages of the Gift Deed are as follows:

• It is irreversible and definitive.?
• Numerous additional costs associated with custom charges vary by jurisdiction. If problems arise later on for both the donors and the donee, it can be problematic.

COMMON MYTH & REALITIES OF GIFT DEED

The common myth and realities of the Gift Deed are as follows:

• Myth: Registration is not mandatory.

Reality: Registration is mandatory for all Gift deeds, especially for the deeds related to immovable assets. As for the movable assets, it is not compulsory but it is advisable to get them registered.

• Myth: Can a Donor write a condition to use the property after even gifting it also.

Reality: Yes, a Donor can impose a condition regarding the use of property after gifting it in the form of Life interest, etc.

• Myth: Are conditional gifts only for immovable property?

Reality: No, it is applicable for both immovable and movable properties. The clauses must be clearly defined in the Gift deed.

• Myth: Any type of conditions can be penned down in the Gift deed.

Reality: No, the conditions must be ethical and legal. No immoral clauses can be mentioned in the gift deed the donor will go through tough legal actions.

• Myth: The gift deed is revocable even after the conditions are fulfilled.

Reality: No, a conditional gift deed becomes irreversible as soon as the terms are fulfilled. The donation cannot be withdrawn by the giver unless there is a particular clause that permits withdrawal in specified situations.

Also, go through the Will vs Gift Deed

Conclusion

Any condition may be included in a conditional gift deed; the only prerequisite is that the states be morally and legally sound. To legally and effectively complete the conditional gift deed, the donor can seek expert legal assistance.