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.