A monetary deed of gift may have certain conditions of acceptance and purposes of execution.
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A money gift agreement allows close relatives to financially support their child and help him buy an apartment. A trust deed of money is most often drawn up by parents in order to protect the individual property of their son or daughter who is married. But in practice this is not so easy to do.
What is a special purpose gift agreement?
This is an agreement according to which one person (the donor) undertakes to transfer free of charge funds to the property of another (the donee) for the implementation of certain goals. This transaction is practically no different from a deed of gift. It is unpaid and free of charge.
The donor does not set the conditions for accepting the money and does not require a gift in return.
Property under such an agreement becomes the property of the person to whom the gift is made. But the agreement is targeted, so you won’t be able to use the money at your own discretion. The donor alienates them for a specific purpose that the recipient needs to achieve.
essential terms of the agreement
The essential terms of a contract are those without which it cannot be concluded. In relation to gift documents, the condition regarding the subject of the gift will be essential.
The subject of the agreement in contracts on the targeted alienation of funds is money in a certain amount. The transfer of funds is formalized by signing a receipt. The money is considered transferred from the moment the receipt is signed.
Receipt is a must
A receipt is a paper that confirms the transfer of funds between the parties. This document should contain the passport details of the participants, indicate the amount and currency, and the date of the transfer act. The signatures of the participants and two witnesses must be affixed to the document.
The fact of transferring a large amount of money must be certified by two capable people and secured with a receipt.
The receipt should be made in two copies. The document must also contain a clause stating that the participant in the transaction will accept a specific amount of funds indicating the currency. It also states the purposes for which the money will be spent.
what is written in the sample
Typically, a targeted donation agreement consists of the following sections:
- information about the parties to the agreement and their expression of will;
- gift item;
- rights and obligations of the parties;
- confidentiality;
- dispute resolution;
- duration and termination of the contract;
- special conditions and final provisions;
- signatures of the parties.
The section on the subject of the agreement specifies the amount of money donated and the purposes for which it is alienated. The moment of actual transfer of money is indicated. The second section outlines the rights and obligations of the parties.
sample agreement for the donation of funds.
completed sample receipt for receipt of money.
In the case of a targeted transfer of money, the basis for termination of the transaction may be the misuse of the gift. If the agreement is cancelled, the donee cannot claim to challenge this fact.
The recipient has the right to refuse to accept the gift at any time in writing. And the donor may refuse to fulfill his promise.
Refuse if, after the conclusion of the transaction, his financial situation or standard of living has decreased significantly. The initiator of the transaction can cancel it if certain conditions are met (Article 578 of the Civil Code of the Russian Federation).
The confidentiality section provides for non-disclosure of data and terms of the transaction. Regarding the resolution of disputes, the procedure is quite simple: the contract states that the parties must initially resolve their differences through negotiations, and if this does not help resolve the conflict, then such disputes pass into the hands of the court.
The article: “Money Gift Agreement” will inform you on how to draw up a money donation agreement. How much does a deed of donation of an apartment cost from a notary, read here.
The contract for the targeted gift of money comes into force from the moment of its conclusion. Terminates after the parties have fulfilled all obligations.
Agreements of this kind can be terminated early by agreement of the parties or on legal grounds. In the final paragraph of the document, the parties undertake to resolve all unforeseen problems within the framework of the law, as well as make changes to the agreement in writing.
A mandatory addition to the monetary deed of gift is a receipt.
The receipt is drawn up in two copies. In it, the donee confirms the receipt of money in the specified amount for the implementation of certain goals.
Contents of the document
To draw up a gift agreement, you can seek help from a law office, or you can draw up this document on your own.
The agreement is drawn up in writing . No special forms or samples are used. It should reflect the following points.
Information about the donor and recipient . For each of the parties, it is necessary to indicate the full name, series and number of the passport, by whom and when this document was issued.
The subject of the agreement is a free donation of certain funds for the purchase of an apartment.
The rights and obligations of the parties in such agreements are rewritten from the articles of the Civil Code.
The donor undertakes to personally transfer/transfer to a bank account within a certain period of time (for example, within three days) the agreed amount of money. He is also obliged to bear all expenses associated with this gift.
The donor has the right to refuse the donation and cancel the contract if, after signing the document, his financial situation or health status has seriously changed.
And also, if the recipient did not use the funds for their intended purpose.
The donee has the right to accept the money or refuse it . Among the responsibilities of the recipient of the money, the contract specifies only the intended use of the funds.
Sometimes lawyers simply write down that in all matters not regulated by the contract, the provisions of civil law should be followed. This method will significantly reduce the volume of the document.
Duration and method of transferring money . Typically, receipts were used to confirm the transfer of money. But today people are increasingly transferring large sums to bank accounts.
Details of the parties : addresses, telephone numbers, bank accounts, if required. A place must be provided under the details for the signatures of the parties.
No special registration or notarization of such an agreement is required.
Donation agreement for the purchase of an apartment, sample.
An alternative to donating money to buy a home is to donate the apartment itself. Find out about:
- what documents will be needed for registration;
- Is gift tax paid?
- on what conditions can you donate an apartment that has been owned for less than 3 years or has a mortgage;
- Is it possible to donate a donated apartment;
- what is better for registering an apartment - a deed of gift or a purchase and sale agreement;
- how to formalize a gift between close relatives and strangers;
- what is a deed of gift for an apartment and what are the pros and cons of such a procedure.
what is the tax rate
Income in cash and in kind, which is received from individuals as a gift, is not subject to personal income tax (Article 217 of the Tax Code of the Russian Federation).
In this case, we are not talking about exceptions to this rule:
- apartments;
- cars;
- shares;
- shares;
- share.
Targeted donations of money will not be subject to personal income tax, regardless of who the parties to the agreement are. The parties to the deed of gift may not be relatives, but the agreement between them will still remain non-taxable.
judicial practice on the agreement of donation of money for the purchase of an apartment
The parties to the contract try to resolve all difficulties and issues without going to court. Especially if the donors and recipients are close relatives. But there are cases when it is impossible to do without the intervention of the court.
One example of such a situation is the following case. The crux of the matter: the parents decided to give their son money to buy an apartment. The deal was completed according to all the rules, the son accepted the gift and signed a receipt.
Three months after signing the contract, the parents filed a claim for forced termination of the deed of gift.
a car donation agreement can be found in the article: “Sample car donation agreement.” Find out a lot of information about the dacha donation agreement here.
This article will tell you how to draw up a donation agreement for an apartment with the right of lifelong residence of the donor.
The basis for this was the fact that the donee did not fulfill the terms of the agreement and the receipt. The money was not used for its intended purpose and the apartment was not purchased.
Court decision: the court decided to satisfy the donors' demands in full. From the point of view of the practice of considering cases regarding forced termination of deeds of gift, this case can be considered an exception to the rule.
Any agreement can be forcibly terminated only if one of the parties does not fulfill it. As such, the deed of gift does not establish financial obligations in relation to the donee.
The gift agreement is gratuitous, but the agreement on the targeted alienation of money has certain conditions that must be observed. The money had to be spent on buying an apartment. It was for this purpose that the donee signed the receipt.
Another case in judicial practice concerned the cancellation of earmarked gift money. The crux of the matter: the father gave his daughter money to buy an apartment. The agreement was fulfilled and the recipient purchased the apartment. A year after that, she died. The father filed a lawsuit demanding the cancellation of the deed of gift on the basis of Part 4 of Art. 578 Civil Code of the Russian Federation.
Article 578 of the Civil Code of the Russian Federation gives the donor the right to cancel the agreement in the case when he outlives the donee.
The court's decision was to dismiss the claim. The transaction was completed by the parties. The recipient bought an apartment. At the time of filing the claim, the deceased’s legal heir did not have the subject of the transaction.
The agreement was concluded in relation to a certain amount of money, and the apartment that was purchased became, moreover, the joint property of the spouses.
A targeted donation of money for the purchase of an apartment is an excellent alternative to a gift for real estate. A targeted donation allows you to donate money to purchase an apartment and avoid taxation.
A gift expressed as a monetary amount is not subject to personal income tax.
Gifts for real estate are not subject to personal income tax only between close relatives. Distant relatives or people who are not related must pay personal income tax in the amount of 13% (for real estate alienation agreements).
Therefore, for parents who want to initially purchase real estate and then give it to their child, it is easier to transfer money to them using a trust deed of gift.
This document is drawn up in simple written form and does not require registration or notarization.
How to invalidate a deed of gift
A deed of gift from a relative is not presented as often as promissory notes, but such cases occur in judicial practice. This method has a number of features that make it impossible to compile “retroactively”, however, not everyone knows about this.
Excerpt from the court decision
Appeal ruling of the St. Petersburg City Court dated January 14, 2020 N 33-813/2020
By virtue of clause 2, part 1, art. 161 of the Civil Code of the Russian Federation must be made in simple written form, with the exception of transactions that require notarization of a transaction between citizens for an amount exceeding ten thousand rubles, and in cases provided for by law, regardless of the amount of the transaction. According to Part 1 of Art. 162 of the Civil Code of the Russian Federation, failure to comply with the simple written form of a transaction deprives the parties of the right in the event of a dispute to refer to witness testimony to confirm the transaction and its terms
The plaintiff’s allegations regarding her mother’s donation of funds with which the disputed apartment was purchased are disputed by the defendant, and therefore, in the absence of evidence of the conclusion of a donation agreement in the form prescribed by law, cannot be considered justified.
In simple words, the donation was not notarized; accordingly, the court did not recognize a simple written form as adequate evidence of the plaintiff’s personal funds.
In addition, even if the gift agreement was executed by a notary, in order to exclude property from the list of jointly acquired property, it is required that the deed of gift be intended, i.e. indicating which apartment will be purchased with these funds.
Excerpt from the court decision
Appeal ruling of the Lipetsk Regional Court dated November 28, 2018 in case No. 33-4069/2018
Accordingly, the district court correctly proceeded from the fact that the very fact of transferring funds for the purchase of S.’s disputed apartment does not indicate that the apartment was purchased with funds donated exclusively to the son; this fact can be regarded as the provision of funds to S.’s family. Under the established circumstances, the court correctly concluded that S.A. an essential circumstance in the case has not been proven, namely, the acquisition of real estate at the expense of personal funds.
