Facts about the Gift Affidavit template

Contents

What is a Gift Affidavit?

A gift affidavit is a sworn statement that indicates that money or something else of value was a gift and not a loan or other transaction. It can help protect both the giver and the recipient. This is most common when making a relatively valuable gift. Giving someone a small amount of cash would typically not require a gift affidavit. However, giving someone a car or a large amount of cash may require one.
Like other affidavits, this is a legally binding statement. The signers indicate that the statement is true to the best of their knowledge. This is important because neither party can later claim that the gift was a loan or sale later. In addition to high-value gifts, items that require a title transfer may also call for a gift affidavit. For example, you could give a vehicle that has a very low market value but that still requires the title to change hands. Signing a gift affidavit allows the transfer to be considered legal and binding without the need for consideration (payment). Similarly, real estate also requires a gift affidavit when given. Of course, most real estate would also be considered to be a gift of significant value. In addition to protecting the parties and making the transfer legally binding, a gift affidavit can also help with tax filings.

What is a Gift Affidavit used for?

As described above, a gift affidavit is used to indicate that something of value was given by one party to another as a voluntary gift. This helps to differentiate the transfer from a sale or loan. This is most commonly used when making major gifts, typically between family members.
Some states require a gift affidavit when transferring an item that has a title or deed such as a car or real estate. If a family member is making or contributing to a down payment on a mortgage as a gift, you may also require an affidavit to show the lender.

Why should you use a Gift Affidavit form?

Giving gifts can be a great way to support a loved one. Of course, whether you are the giver or the recipient, practicality is also important with gift-giving. Getting the transfer in writing can have several benefits. From a tax perspective, a gift affidavit may be necessary to show that the money or item was a gift, meaning it may be exempt from taxes. Alternatively, the taxes may be lower thanks to gift exemptions. It may also be important to show that the intention was to give a gift, not a loan.
Creating a gift affidavit is much easier with a form. You can get the wording right with less hassle. In most cases, a form will also help you to remember all the details you need to include.

How to write a Gift Affidavit?

Writing a gift affidavit is relatively simple, especially if you use a template. However, it is important to include all the necessary details. Your gift affidavit must include the following:

  • Donor Name and Information: The gift affidavit must include the name of the donor. It should also include the address, state and country. This helps to correctly identify the party involved.
  • Recipient Name and Information: Similarly, the affidavit should also include the name and address of the recipient. Some people include the legal relationship between the two parties. However, that is not required.
  • Gift Description: The affidavit must accurately describe the gift. This includes a description of the asset, its value and when it is being given. If the gift has an identifier such as a VIN or address, that should be included as well.
  • Statement of Intent: The donor’s intent that the asset is a gift must be stated within the affidavit. This is typically included in the template.
  • Party Signatures: The document must include space for both the donor and recipient to sign.
  • Notary Details: Finally, the affidavit will need to be notarized. There should be a section for the notary public to include his or her details and signature.

How to fill out a Gift Affidavit with PDFSimpli in five steps?

  • 1: Prepare

    As described above, your gift affidavit will need to include the accurate legal names of the parties and their addresses. Additionally, you will need to describe the gift. This may include figuring out the accurate market value of the item if it is not monetary. Additionally, you may need to include identifying details such as a VIN.

  • 2: Choose Software

    Before beginning to write your gift affidavit, select a software tool to create it with. PDFSimpli is one of the best options for making any legal form. It is fast, easy and available on any device with a browser. Plus, there are numerous templates available for gift affidavits and many other forms. It is the easiest way to fill out legal forms.

  • 3: Fill Out or Edit the Gift Affidavit

    Open the template in the online editor. You can fill in all of the key details described above. If you want, you can also edit the wording of the affidavit to fit your situation. Plus, you can add images, diagrams and other content that may help with describing and identifying the gift asset(s).

  • 4: Review

    Before proceeding, remember that this is a sworn statement. If you are making any inaccurate claims in your affidavit, you could be held legally liable. While an honest mistake may not cause any issues, it is best to double-check everything you are writing in the document. In particular, check your valuation of any non-monetary assets included in the gift.

  • 5: Save, Download or Print

    Finally, you are ready to sign the document. Although PDFSimpli allows you to add a digital signature, this affidavit needs to be notarized. So, you will need to bring it to a notary public before signing. You can print the document directly from PDFSimpli. Alternatively, you can save it to the cloud or download the affidavit to print later.

Gift Affidavit frequently asked questions

Having a gift affidavit records the gift-giving in writing. This means that the donor’s intentions are clearly stated. Additionally, both parties have the relevant paperwork they may need for taxes, titling and any other processes. Furthermore, having an affidavit can help to prevent any misunderstandings between the parties about whether the asset is a loan or a gift. In some cases, a court may request a sworn statement indicating that an item was a gift. This can come into play with unrelated legal proceedings such as divorce.

No, a gift affidavit is typically only used for giving gifts between family members or other individuals. When giving to charity, getting a receipt from the organization is typically enough to properly document the donation. In some cases, you may need a more advanced agreement for a complex donation. However, this will not be a gift affidavit.

The donor may want to have a gift affidavit if he or she needs to prove that an asset was given away as a gift. Additionally, having the intention in writing can be helpful for tax purposes. An affidavit can also help to make the transference of property simpler, meaning fewer obstacles for all parties involved. Overall, if the gift is valuable or has a title or deed, having an affidavit is a smart decision for both the giver and recipient.