Deed Of Gift Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Deed Of Gift, written in plain English, along with examples of how it is used.

What is Deed Of Gift?

A legal document that transfers property ownership without the requirement of a purchase price.

History and Meaning of Deed Of Gift

Deed of Gift is a legal term that refers to a document that transfers ownership of property or assets from one party to another without the exchange of money or consideration. Such a transfer is considered a gift, and reduces the giver's estate and gift tax exemption. Originally, "Deed of Gift" was a feudal term used to refer to the transfer of land or property from a higher nobleman to a lower nobleman as a mark of favor. Over time, the concept expanded to include gifts between ordinary people.

The document is used when an individual or organization wants to transfer a property to a recipient without receiving anything in return. The recipient and the giver usually sign the deed of gift in front of a witness or notary public, making the transaction legally binding. Some common reasons for using a Deed of Gift include gifting property or other assets to family members, charities, or organizations.

Examples of Deed Of Gift

Here are a few examples to help illustrate how the term might be used in various contexts:

  • A wealthy parent gifts shares in their company to their children through a Deed of Gift to reduce their estate tax.
  • A charitable organization receives a piece of land as a donation through a Deed of Gift.
  • An artist gifts their artwork to a museum through a Deed of Gift arrangement.
  • A homeowner transfers ownership of their home to their adult children through a Deed of Gift without any exchange of money.

Legal Terms Similar to Deed Of Gift

Here are some related legal terms that are similar to Deed of Gift:

  • Donor: Refers to the person who gives the gift in a Deed of Gift transaction.
  • Gift Tax: A tax that is imposed on the transfer of property or assets given through a Deed of Gift arrangement.
  • Transfer of Ownership: The legal process of transferring ownership of property or assets from one party to another.
  • Quitclaim Deed: A document used to transfer property ownership without making any warranties or guarantees.
  • Contract for Deed: Arrangement where the buyer makes regular payments to the seller until the purchase price for the property is paid in full.