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Where Taxpayers and Advisers Meet

How to record gifts?

tavery
Posts:4
Joined:Wed Apr 13, 2016 10:43 am
How to record gifts?

Postby tavery » Fri Dec 14, 2018 3:28 pm

Hi

What is the best way to record gifts? Gifts include cash gifts into bank account and also cash gifts to a lender to pay of joint mortgage.

Is a letter sufficient? I have assumed that it would be but do I need to do anything to make them valid or to make me the 'owner' of gifts? I have read that because there is no consideration the gifts can be challenged?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: How to record gifts?

Postby AGoodman » Fri Dec 14, 2018 5:56 pm

There is no magic to it and usually no need to record anything but if, say, Person A is paying the mortgage of Person B it can be useful to record in a letter that it was intended to be a gift rather than a loan or an intent to acquire a share of the property.

It doesn't make the gift any more valid but does at least confirm that it was a gift.


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