Fill Out Legal Utah Gifts Forms For Free

A gift letter is a legal instrument that clearly and explicitly states, without question, that a friend or family member ?gifted? - rather than loaned - you money. You can use a gift letter for mortgage lenders who may be questioning a large influx of cash that suddenly showed up in your checking or savings account.

For a gift to be considered valid, it must satisfy certain elements, including the transfer of ownership, the existence of the property, the absence of consideration, the free consent of the donor, and the acceptance of the gift by the donee.

The law states that in order for money to be a ?gift? it must be transferred voluntarily. If the gift is given on a condition, perhaps to buy a property, and that wish isn't fulfilled, the donor can ask for it back.

Gift is defined in section 122 of the act as: ?the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.?

Photographic documentation is a good way to prove that a gift was delivered to you. If there is no evidence to prove acceptance, then a claim is much harder to prove. Write up a statement describing what occurred between you, the donee, and the person who gave you the property, the donor.

Current tax law permits anyone to give up to $15,000 per year to an individual without causing any federal income tax issues or reporting requirements. Let's say a parent gives a child $100,000. The parent would have no tax to pay on that gift nor would the child have any tax to pay upon receipt.