(1) What is a Gift Deed?
A Gift Deed means, In a simple term, we can say that a Gift Deed is a written document created by the donor in favor of the donee. Here the donor means a person who gives a gift, and a donee means a person who receives a gift from the donor, through the Gift Deed donor can easily transfer a property that he wishes to give as a gift as per law.
The donor’s general intent in making a Gift Deed is for love, affection, charity, or a similar object. The creation of a Gift Deed is not compulsory for gifting any property to another one.
But it is advisable to create or execute a Gift Deed in writing form to establish validation of gifts in the future with the documentary record and proof so that Gift Deed can be enforceable as per law.
Now the question arises is that what kind of property can be giftable? Any property can be a gift like movable, immovable, which is transferable and tangible.
If we refer to the provision under section 122 of the transfer of property act, 1882, there is mention that gift is the transfer of particular property, whether moveable or immovable property, such transfer is made by the donor voluntarily as without any consideration.
And these terms must be specifically mentioned in the Gift Deed that there is no consideration or payment or compensation will receive for the transfer of property.
(2) What are the essential elements of a Gift Deed?
Here is some essential factor we should know to make a useful and legally valid Gift Deed in India. These things would specifically be required to define in the Gift Deed.
- To make out a valid gift deed, two persons must be necessary, for example, Donor and the Donee. This relationship between the Donor and Donee is an essential part of the Gift Deed.
- But there is not a mandatory requirement that Donor and Donee belong to blood relations. The Third-person may become a Donee without any blood relationship.
- The transfer must be voluntary with the donor’s donative intent and not to any pressure or fraudulent intention. The transfer must have voluntary a major and sound-minded donor without any force or fraud.
- The transfer must be without consideration, and no money transaction or compensation should be aspected by the donor. The gift deed should be executed of love and affection only.
- If Donee does not accept the donor’s gift property, then such a gift deed becomes invalid. That way, Donee must have to accept the transfer of property during a lifetime as per the mandatory requirement of a valid Gift Deed.
- In case if the donor wishes for other rights and liabilities related to gift property, he should be mentioned specifically in writing form.
For example, These rights should be how to enjoy the property or receive any other income or future profit earned through the property. Accordingly, if any future expenses like maintenance of the property, the tax should be specifically mentioned in the deed.
- A delivery clause must be mention, which would confirm the delivery of the property’s possession.
(3) Who can execute a Gift Deed?
Any sound-minded person is eligible to execute a Gift Deed; As a donor, he is a competent person who can give a Gift Deed as per his desire and transfer it to the donee.
As we know, that Gift Deed is a legal contract, so here is one thing we should have to know that a minor can not make a Gift Deed. A contract with a minor is void as per law; he/she can not become a donor to do a Gift Deed. Therefore, if a Gift Deed created by a minor is null and void, and it is not valid in law.
(4) Who can be a Donee?
Anyone who receives and accepts a gift from the donor is called donee that can be in blood relations like son, brother, mother, father, etc. A Gift Deed can also be done without blood relations like a relative person, nephew, friend, non-government organization, etc.
In the case of minor: If in some circumstances the donor wants to give a gift to a minor, there is no bar in the law that a minor can not become a donee. A natural guardian of the minor can accept a gift on behalf of him. They can receive the gift as a manager or agent of a minor. However, after becoming an adult, a minor has to decide that he has accepted a gift or not.
(5) Whether a Gift Deed should be registered?
The answer to the question is yes. the gift deed required to be registered. As per section 17(1)A of the registration act, there is specific mention that instruments of the gift of immovable property have to be compulsory require to register, and charges of registration will have to be paid.
Here one thing we should know is that without registration of a Gift Deed of the immovable property, there is no value in the eye of law. Held without registering the Gift Deed of immovable property, it does not validly affect any evidentiary value of such a gift. However, there is not a mandatory requirement of registration for the transfer of moveable property. A Gift Deed should be registered at the registrar’s office or sub-registrar office of your town area.
(6) What necessary steps are involved in drafting a Gift Deed?
Here are some necessary steps that should be included in the gift drafting process to make a valid gift in India.
The first essential step for the draft a Gift Deed; there is mention of the full name of a donor and a donee with a residential address, age, the relation between the donor and donee( If any).
- Mentions the full details of properties, which is a donor want to gift to the donee.
- To put on both party’s signature as well as two attesting witnesses’ signatures in the Gift Deed, which is a crucial part of a valid Gift Deed.
- The second step is to attach a stamp paper that counts upon a value of the properties, and it might be different from the state-wise.
- Now the third step is to register a Gift Deed at the nearest registrar’s office or sub-registrar office, which is a mandatory part of a valid gift deed in India according to the law.
(7) What type of documents are required for registration of a Gift Deed?
These types of documents required are commonly used for the registration process of a Gift Deed. ( these types of documents may be changed or different for the registration purpose.)
- First is a copy of an original Gift Deed that wants to register.
- Identity proofs of parties ( Donor, Donee, witnesses), like pan card, Aadhar card, etc.
- Documents of the donor’s property for the proofs of the title of the donor.
- Any others document like valuation certificate of property, property tax-related documents, etc.
(8) Which type of property can be gifted?
The following types of property can be a gift through a Gift Deed:
- It should be an existing property of movable or immovable property, like cash, shares, land.
- It should be transferable property.
- Any property that probably exists in a future property that does not exist today; it should not be covered in the gift deed.
- It should be a transferable property.
- It should be tangible property.
(9) Is the gift deed revocable / can be taken back?
As per the proposition of legal terms, any registered documents can not be canceled through the cancellation document in India. i.e. a sale deed, will, a Gift Deed, can not be canceled through the cancellation document.
Same way when a Gift Deed registered as per the registration act can not be revoked through the cancellation document. In a Gift Deed after the registration, the donee becomes the owner of the Gift property. If the donor wants to cancel a Gift Deed he must go to court and seeking for the cancellation of the deed.
If the parties of a deed agreed and mutually mention wholly or any part of will be revocable, as per the donor wishes, then said Gift Deed is not valid in the eye of law.
We show the legal proposition regarding the cancellation of a Gift deed, which is specifically mentioned u/s.126 of the transfer of property act,1882. this section deals with when the gift can be revoked or suspended. When any specific event does not depend on the will of the donor, on that occasion said Gift Deed might be suspended or revoked.