What Is a Gift Affidavit?
A gift affidavit is a legal document showing a donor’s intent to give a donee a gift. In a gift affidavit form, the donor issues a sworn statement that they’re giving an item to a recipient without expecting payment.
When the item has significant value or requires a title or deed transfer, the gift affidavit clearly:
- States the donor’s gift-giving intentions
- Documents that the process isn’t subject to a loan agreement or sale
- Declares the recipient did not exchange another valuable object for the item
Classifying an item as a gift may be relevant for registration, taxation, and other purposes. Federal or state officials may need to be aware of your provision so you can remain legally compliant.
Does a gift affidavit need to be notarized?
In most cases, a gift affidavit does not need to be notarized. It only requires your signature as the donor, which attests that you’re giving the gift without coercion. However, notarization can increase the validity of your statement. Some institutions may require notarization to acknowledge the document.
When to Use a Gift Affidavit
A gift affidavit is commonly used when transferring ownership of valuable property—like a motor vehicle—as a gift. If you’re giving a car to a family member or friend, complete a gift affidavit for a motor vehicle to declare that no payment is involved. Confirm the transfer of ownership by pairing it with a motor vehicle bill of sale, listing the sale price as “$0.” Check if your state requires additional forms, such as an odometer disclosure statement or title transfer paperwork.
A gift affidavit is useful when gifting other items, such as personal and real property. You can also use it to certify that any gift of income, cash, or securities does not require compensation.
How to Fill Out a Gift Affidavit
Writing a gift affidavit helps you communicate that a gift is just that—and that you don’t expect anything in return. Follow these steps to fill out your gift affidavit.
1. Provide Donor Details
Include your personal information as the donor, such as your name, date of birth, address, phone number, and Social Security number (SSN). This information helps the necessary parties identify you. Also, include the state governing the document in case a dispute arises.
2. Write the Donee’s Information
Input the donee’s name and address, making it clear to whom you’re gifting the item.
Step 3 – Describe the Gift
Describe the item you’re giving as a gift. For example, if you’re gifting a car, you should provide the vehicle’s:
- Make
- Model
- Vehicle identification number (VIN)
- Value
- Title number
- Details of any remaining debts the vehicle has and if the donee will assume those debts
Supporting Documentation
Attach supporting documentation to your gift affidavit. For example, if you’re writing a motor vehicle gift affidavit, attach a title to the vehicle as an exhibit.
4. Obtain Signatures
Both you and the donee should sign the document. Your signatures confirm that both parties understand the extent of the non-reciprocal transaction.
Step 5 – Notarize the Document (Optional)
While both parties don’t have to sign the affidavit before a notary public, having the document notarized will help verify its authenticity if a dispute arises.
Gift Affidavit Sample
View a free gift affidavit template below to learn how to affirm that a motor vehicle is a gift. Once you view our sample of a gift affidavit form for a motor vehicle, you can write and download your own in PDF and Word format.
How to Avoid the Gift Tax
The general IRS rule is that any gift is taxable. In most cases, the donor is responsible for paying any applicable gift tax, but the donor and donee may work out an agreement where the donee pays the tax [1] . It’s best to consult with a tax professional if you want the donee to pay the tax, as the situation can involve intricate details.
Even though the IRS considers all gifts taxable, many exceptions exist. Explore the following methods to ethically and legally avoid paying gift tax.
Method 1: Follow the Annual Gift-Giving Limit
The IRS imposes an annual gift-giving limit each year. For 2025, the annual limit is $19,000 per recipient, up from $18,000 per recipient in 2024. [2] There isn’t a limit on the number of people you can give $19,000 per year as long as you don’t exceed the lifetime monetary limit.
If you want to give more than $19,000 to one person, consider spreading the gift out over a couple of years. For example, imagine you want to give a nephew $30,000 as a graduation gift. You can give him $15,000 in 2025 and $15,000 in 2026, meaning you won’t exceed either year’s limit.
Historically, the IRS’s annual gift-giving limit has remained the same between years or increased.
Method 2: Take Advantage of the Lifetime Limit
Take advantage of the IRS’s lifetime limit of $13.99 million per individual in 2025 [3] . A donor can give away up to $13.99 million in their lifetime without paying gift taxes.
Suppose you give away $20,000 to a family member in 2025. This amount exceeds the annual limit for giving to a single person, but you can still avoid gift tax by subtracting the remaining amount ($20,000 minus the $19,000 annual limit is $1,000) from your lifetime limit. You must fill out Form 709 to properly report your gift-giving activities and ensure the $20,000 isn’t subject to tax.
Method 3: Leverage Marriage in Gift-Giving
Even though two individuals can share property within a marriage, the IRS grants them each the same annual gift-giving limit of $19,000 per year for 2024. With this in mind, a married couple can give a gift to one individual up to $38,000 in value, and they can do this for as many people as they like. They only have to remain within their individual lifetime limits.
Method 4: Give a Gift for Medical Expenses
If you know someone suffering from a health condition that incurs hefty medical expenses, consider giving them a gift to cover them. All gifts for medical expenses are not subject to gift tax. You must give the monetary gift directly to the recipient’s insurance provider or healthcare institution.
If you give the gift directly to the recipient (even if the recipient intends to use it to cover their medical expenses), you may have to pay the gift tax.
Method 5: Give a Gift for Educational Expenses
You can give a gift to someone to cover their educational expenses and not be subject to the gift tax. However, gifts for educational expenses are similar to gifts for medical expenses. You must give the cash gift directly to the recipient’s educational institution to be exempt from the gift tax.
Make Your Gift Official with No Strings Attached
Clearly show your intent to give—without expecting anything in return. Legal Templates’ free printable gift affidavit form helps you document that your gift is unconditional and not part of a sale, loan, or trade. Download, customize, and print in minutes for stress-free giving and peace of mind.
Frequently Asked Questions
Does gifted money count as income?
No, gifted money does not count as income. However, you will have to account for any income that the gifted money later produces and pay taxes on it.
Can I cancel my gift affidavit?
Generally, gifts are irrevocable once you use a gift affidavit to document them. However, an exception exists for “gifts causa mortis,” which are gifts made in anticipation of the donor’s death. These gifts can be revoked by the donor at any time before death, and they only become final if the donor passes away as expected. If the donor recovers or changes their mind before dying, they can cancel the gift.
Can someone gift an item to a person on my behalf?
Yes. Someone else can gift items on your behalf. When giving a gift of low value in an informal situation, you may not need a legal document to outline the transaction.
However, you should consider drafting a letter of authorization or a limited power of attorney to grant the stand-in gift-giver official authority to act on your behalf.
