Gift Deed Meaning, Drafting and Format to Download

By | March 5, 2013

What is a Gift Deed?

Gift Deed Drafting and FormatA gift deed is an official authoritative archive used to give a gift of property or cash to a different individual. It exchanges the cash or possession of property from the donee, without the trade of cash or a different sort of property. The exchange likewise happens without needing the donee to work for what he gets. Property moved in this way is as a rule given out of the love, adoration, affection and friendship the provider has for the donee.

The individual who makes and executes a gift deed to exchange cash or property from himself to an additional individual is called a donor/giver. Despite the fact that he may possess 100% engage in the property he plans to exchange along these lines, his signature isn’t enough to make the record lawful. Rather, the donor/benefactor must sign the form and have it witnessed. The amount of signs required may differ from place to place but many jurisdictions require two witnesses.

The individuals who sign as witnesses need to be disinterest parties, which indicate that they can’t have a stake in the exchange of the property. Depending on if the individual stands to profit or take a loss on account of the exchange of the property, he can’t be acknowledged disinterested and can’t function as a witness. For example, the wife of an individual who can get property may not be allowed to witness the report, as she may profit from the gift. There may be different necessities set for witnessing the gift, depending on the jurisdiction in which it is executed.

Some of the time, individuals make revocable gift deeds. In this scenario, the donor/giver drafts the record however does not give it to the donee right away. Rather, he clutches the deed until he feels prepared to give it to the donee. In this case, the donor may repudiate the gift provided that he decides to do in this way, and he doesn’t need to convey or hand over the property or cash to the donee, regardless of the possibility that the deed is complete, signed, and witnessed.

A donor/giver can’t change or revoke an irrevocable gift deed. In this situation, the owner drafts the deed and has it signed and witnessed as per his jurisdiction laws. When he gives the deed to the donee, the donee takes quick legitimate proprietorship of the gift. The giver can’t change his decision and recover the cash or property he has moved in this way.

To make a valid gift of property

The donor is the person who gives. Any person who is competent to contract can make a gift of his property. A minor, being incompetent to contract is incompetent to transfer. A gift by a minor is void.

However, a minor can accept gifts. A natural guardian can accept a gift on behalf of a minor with the condition that the person nominated in the gift deed will act as a manager of the gifted property. Such acceptance would amount to recognition by the natural guardian of the nominated person as the manager or the agent of the minor for the purpose of the property.

For a valid acceptance

The donee is the person who accepts the gift. A minor may be a donee. But if the gift is onerous, the obligation cannot be enforced against him while he is a minor. But when he attains adulthood he must either accept the burden or return the gift. A gift may be accepted by or on behalf of a donee.

A donee may also be a person who is unable to express acceptance. A gift can be made to a child and could be accepted on the child’s behalf. The donee must be an ascertainable person.

Process of gifting

A gift involves the process of giving and taking which are two simultaneous and reciprocal acts. There must be acceptance of a gift as well. There is no particular mode of acceptance. It may be express or implied. Further, the property must be accepted by the donee during the lifetime of the donor.

The fact of acceptance can be established by different circumstances such as donee taking the property or being in possession of the deed of gift. If a document of gift, after its execution or registration in favour of a donee is handed over to him by the donor, it amounts to a valid acceptance of the gift.

Competence to contract is an important qualification required for making a gift. A gift to be valid must be made by a person with his free consent and not under compulsion. However, a mere weakness of the intellect would not be sufficient to invalidate the gift.

The gift must be a certain existing movable or immovable property. It may be land, goods, or actionable claims, and must be transferable. There cannot be any gift of future property. A gift must be of tangible property. Only an existing and tangible property is capable of being gifted.

Absence of consideration must

A gift is a transfer without any element of consideration. Complete absence of monetary consideration is an important prerequisite. Where there is any equivalent of benefit measured in terms of money in respect of a gift, the transaction ceases to be a gift.

The transfer of property must be voluntary and made gratuitously. It must satisfactorily appear that the donor knew what he was doing and understood the contents of the instrument and its effect, and also that undue influence or pressure was not exercised upon clear intention to make a gift.


Even when a gift is made by a registered instrument, it has to be accepted by or on behalf of the donee to make it complete , failing which the gift will be void. The law requires acceptance of the gift after its execution, though the deed may not be registered. The acceptance may be signified by an overt act such as the actual taking of possession of the property, or such acts by the donee as would in law amount to taking possession of the property where the property is not capable of physical possession. Delivery of possession is an essential condition for the validity of the gift.

However, it is not necessary that in every case there should be a physical delivery of possession. Possession may be either actual or constructive. The donor should divest himself completely of all ownership and dominion over the gift.


A gift of immovable property can be made only by a registered instrument under Section 123 of the Transfer of Property Act,. A gift of immovable property, which is not registered, is bad in law and cannot pass any title to the donee. Documents should be stamped with appropriate no judicial stamp, registered as required under the India Registration Act and attested by two witnesses. A mere delivery of possession without a written instrument cannot confer any title. A deed cannot be dispensed with even for a property of small value.

Format of Gift Deed

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