To Whom is a Gift Deed Executed in the Eyes of Law?

In the realm of property and personal asset transfers, a gift deed plays a vital role. It is a legal document used when a person willingly transfers ownership of movable or immovable property to another person without any exchange of money or consideration. But a common legal question arises: To whom is a gift deed executed in the eyes of law?

Let’s explore the answer and the legal framework surrounding gift deeds in India.

Who Executes a Gift Deed?

Legally, a gift deed is executed by the “Donor” — the person who is voluntarily giving away the property — in favor of the “Donee”, the person who receives it. This transaction must be made without any consideration, meaning it’s not a sale or exchange but a genuine gift.

Legal Framework Governing Gift Deeds

Gift deeds in India are governed by the Transfer of Property Act, 1882. As per Section 122 of the Act:

“Gift” is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.

This definition makes it clear that:

• The donor must be a competent person.
• The gift must be made voluntarily.
• There must be no monetary exchange.
• The donee must accept the gift.

Essential Elements of a Valid Gift Deed

• Donor and Donee: Clearly identify the parties. The donor must be legally capable of making a gift, and the donee must be capable of accepting it.
• Voluntary Transfer: The gift must be made out of free will without any undue influence or coercion.
• No Consideration: A gift must not involve money or any other exchange.
• Acceptance: The donee must accept the gift during the donor’s lifetime.
• Registration: For immovable properties, registration of the gift deed is mandatory under the Registration Act, 1908.
• Stamp Duty: The gift deed must be executed on appropriate stamp paper, as prescribed by the respective state laws.