A Gift Deed is a document mentioning the transfer of movable property from donor to donee. For a Gift Deed to be valid it is important that the transfer of Gift is done voluntarily and without any consideration.
Drafting a Gift Deed:
The very first step is drafting which mentions the process of Gifting consisting the reciprocal act of giving and taking. The transfer of property should not involve any exchange of money. The Deed should also contain other important details such as names, address of parties and valuation, date, place pertaining to the property.
Acceptance of Gift:
Once the Gift Deed is drafted, it becomes important that the Gift is accepted by the donee during the lifetime of the donor otherwise it ceases to be a valid Gift.
Registration of Gift Deed
As per section 17 of the Registration Act 1908 and section 122 of Transfer of Property Act 1882, transfer of property through a Gift is considered valid only if it is registered because without registration it doesn’t pass any lawful title to the transferee. Valuation of property should be done through the help of an expert and stamp duty is payable according to the applicable rates in the respective state. The stamp duty rates for women are slightly lower than that of men.
Exception to Gift:
Minors are not entitled to contract because such contract is termed as void or unenforceable. A minor cannot transfer a property through a Gift Deed as this will be considered invalid. However, minors can accept a property through a Gift Deed. This can be done by a legal guardian or legal manager on behalf of minor. In case the Gift is onerous than the minor becomes liable to bear the burden or return the Gift to donor once he attains the age of majority.
Differences between a Will and Gift Deed:
Will is a legal document containing the name of beneficiary of assets after the death of testator whereas Gift Deed mentions the transfer of property to the donee during the life of transferor. A Gift Deed once registered and transferred cannot be revoked whereas Will can be revoked multiple times during the lifetime of testator.
Any rightful owner wishing to transfer a property can do so out of love and affection to the transferee. Gift Deed is distinct from Sale Deed or Conveyance Deed where consideration is involved. It is a simple, irrevocable transfer of property.
Gift Deed to Blood Relation Gift Deed to Non-Blood Relation