Yes, all lenders will require a gift letter. Although you may have the funds, the lender needs to confirm that you won't have to repay the gift.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. What should the gift letter include? A Monetary Gift Affidavit serves as proof that a cash gift was intended as a genuine gift and not as a trust or loan. Gifts of assets can help you reduce your taxable estate. In Minnesota, gifts might help you make a small estate smaller and avoid the probate process. 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. The Minnesota Gift Tax was repealed on March 21, 2014. You are not required to file a Gift Tax return.