A gift letter is a document stating that any money received from family or friends is a cash gift and not a loan. A gift letter is a piece of legal, written correspondence explicitly stating that money received from a friend or relative is a gift.If borrowers plan to use gift money, they must request a gift letter from their lenders. For the letter to be valid, it must declare that the money you received is a gift with no intention of repayment on the recipient's part. This form is to be used for disclosing gift information. These letters provide documentation of a monetary gift from a family member or friend, which can serve as a gifted deposit. Just wanted to help out a little. Here's to your dreams of being an elite home cook. You need to provide any and all documents affirming that the money is indeed a gift not a loan from your parents.