Gift Letter
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What is a Gift Letter and how do you use it?
A gift letter is a written legal correspondence explicitly stating that money received from a relative, parent or connection as a gift. Gift letters for tax purposes often come into play when a borrower has received assistance in making a down payment on a new home or other real estate property.
Gift letter sample:
Here's what your gift letter should include:
- Donor's name, address, and phone number;
- Donor's relationship to the client.
- Dollar amount of the gift.
- Date the funds were transferred.
- Statement from the donor that no repayment is expected.
- Donor's signature.
- Address of the property being purchased.
Dear {{Name}},
I, {{Name}}, intend to offer a gift of {{Amount}} to {{Name(s) of Recipient(s)}}, my {{Relationship to the Recipient}}, for the purchase of a property located in {{Address of the Property}}.
I expect no repayment for this gift from the recipient in either cash or future services, and any lien will not be filed by me against the property.
The source of this gift is [{{Account for the Source of the Gift}}.
For any additional information with regard to this matter, contact me at {{Number}}.
Cordially yours, Name and Signature
Download this Gift Letter template now for your reference.
DISCLAIMER
Nothing on this site shall be considered legal advice and no attorney-client relationship is established.
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