Did you know that you need a deed of gift if you’re going to give away a condominium to your children or grandchildren?
It may not be every day that you give away a condominium, property or shares, but when it does happen, it is important that it is done in the right way. Otherwise, the risk is that the gift will be invalid according to law. As long as your gift is not movable property such as money or loose things, you must have a deed of gift. Writing a deed of gift is not the same as writing a will where you specify who will receive what after your death. In the deed, you instead give away a gift where you were previously the owner. You can give the gift to a family member, a friend, an organization or someone else you think deserves to receive said gift.
What do you need to include in a deed of gift?
When you write a deed of gift, you need to specify which property or assets you want to give away and who will receive them. You also need to specify the value of the gift and when it should be given. If you’re giving away a condominium, a property or a plot of land, there are also certain legal requirements in addition to the deed itself that must be met.
You can also choose to give the gift with or without reservation. If you give a gift with reservation, it simply means that you set conditions for the gifting. For example, it may be that the gift should not be seen as an advance on an inheritance. In those cases it is especially important to review the deed to make sure it is correct . Otherwise, it could affect your will in a way you don’t want to.
In the deed of gift, you can also state whether the gift is meant as individual property of the recipient. That ensures that the gift stays with the recipient in the event of a divorce. Or you can specify that you will be able to use the gift for a certain period of time. If it is, for example, a condominium that you want to give away but want to be able to use, you need to state this in the deed.