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. 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. 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. Learn more about the ASPCA's work to rescue animals from abuse, pass humane laws and share resources with shelters nationwide. Join our fight today! Learn more about the ASPCA's work to rescue animals from abuse, pass humane laws and share resources with shelters nationwide. Join our fight today!