Hi, I'm new to this but need advice. My parents have given me and my brother a substantial cash gift.As I understand it, a parent can gift £3,000 per year to a child free of any IHT liability. The letter must explain who is gifting the money, where the donor's funds are coming from and the relationship between the donor and the recipient. Here's a sample gift letter you can use to prove that the money is truly meant as an outright gift, with no expectation of repayment. A gift letter template is actually very simple to write. A gift letter is an important, formal, legal piece of documentation that can help explain that a (usually rather large) sum of money was gifted to you.