Gift Deed is a legally binding document for the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donor, and accepted by or on behalf of the receiver.
Donor and receiver can agree on a specific event that might lead to cancellation of gift deed and specifics of the events must be added in the gift deed. Cancellation of gift deed means gift will not be transferred to the receiver and gift deed will be considered as void. Cancellation deed must be executed for this purpose.
A Gift Deed can be made only when the donor is not a minor.
A gift can be transferred to a minor through Gift Deed by appointing a guardian and transferring the gift to the guardian until the minor comes of age.
A future property cannot be transferred through a Gift Deed. A Gift Deed becomes void if the receiver decides to reject the gift.
No exchange of money is involved between the donor and the donee in a Gift Deed.
A donor needs to be alive for execution of Gift Deed otherwise Gift Deed is considered void. A Gift Deed is executed when the donor is alive while a Will is executed after the death of the owner. It is different in different states. The donor and donee may agree that on the happening of any specified event which does not depend on the will of the donor, a gift shall be suspended or revoked, but a gift which the parties agree shall be revocable wholly or in part, at the mere will of the donor, is void wholly or in part, as the case may be. A gift may also be revoked in any of the cases in which, if it were a contract, it might be rescinded. Stamp duty varies from state to state. For example, stamp duty in maharashtra is at 3 percent of market value of the property. These fees are calculated by stamp duty and registration fees and service charges. Legal Tempo provides the best charges for these services.