Gift Requirements

Gift Requirements

This article discusses the legal requirements for an ordinary gift: donor competence, donor intent, donor delivery, donee acceptance, and appropriate documentation, if necessary.

First, an ordinary gift requires a competent donor. The donor cannot, for example, be under guardianship. Second and third, an ordinary gift requires the donor’s intent to have the gift property (or an appropriate document representing the gift property) transferred to the donee. The actual process of transfer is known as delivery. Fourth, an ordinary gift requires that the donee agree to receive the gift property. This act of receipt is known as acceptance. Fifth, an ordinary gift may require appropriate documentation.

Required Documents

The documents required for a gift, if any, depend on what kind of property is transferred.

As a general rule, no documents are required to give tangible personal property. Where there is no documentation of a gift, however, disputes can easily arise. A gift documented by a writing is difficult to challenge. Any documentation will help. Thus, a donor may want to make a formal writing known as a “Declaration of Gift.” A donee may want to make an informal writing such as a simple “thank you” note to the donee.

As an exception to the general rule, the law sometimes requires certain gifts of tangible personal property to be in writing. For example, most states have certificate of title laws. Under a certificate of title law, the only proof of ownership of a car, boat, or other vehicle is its certificate of title. It is not sufficient to just give the someone the keys. Thus, the gift requires notarization of the certificate of title and transfer at the appropriate government agency.

A gift of intangible property requires the transfer of a document that represents the intangible property. Intangible property includes, among other things, bank accounts, stock, copyrights, patents, trademarks, and royalties. Intangible property is often represented by documents with appropriate serial numbers. U.S. patents, for example, are numbered. Each patent has a serial number (e.g., U.S. Patent No. 6,438,932).

There are many kinds of documents that represent full or partial ownership in real property. For example, full ownership in real property is usually represented by a document known as a deed.

Your Lawyer

It is wise to consult your lawyer before making a substantial gift. Your lawyer can help you evaluate the wisdom of making the gift from all points of view, including any tax law implications. Your lawyer can help you make sure that the gift is appropriately documented.

Experienced Legal Representation in the Greater Houston area

Help with your divorce, child custody, or other family law issue is only a call away. Contact Robert Reid McInvale toll-free at , or complete our online contact form.

Come meet us at either of our TWO locations for your convenience:

1. NW Harris County Office
One Chasewood Bank Bldg.
20333 SH 249 @ Chasewood Park Drive, near Louetta and just south of Hwy 99
serving Cypress, Tomball, Spring and The Woodlands

2. West Office
16360 Park Ten Place,
Serving West Houston, Katy and Ft. Bend County

Your case can be handled by Reid McInvale in YOUR county of residence or any other county in the Greater Houston Area and the entire State of Texas.

Call for an appointment:

Main number 281-955-1111
Toll-Free Number: 866-959-7824
The Woodlands call 281-367-4422