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.
Challenging the purchase of an apartment
The contract of donation of any thing is a unilateral transaction . Donating money to buy an apartment is no exception. This means that, in essence, a person can dispose of the received property at his own discretion.
In the situation under consideration, when money is donated for a specific purpose, the recipient must spend it on buying an apartment . In the future, the donor will no longer be able to influence the choice of a specific residential premises.
If the intended use of the gift is confirmed , the former owner of the money has no legal opportunity to challenge the purchase of the apartment.
Subsequently, the apartment can be sold, and no document will prevent the former owner of the property from using the funds as he pleases.
The scope of application of this type of contract is quite limited.
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Read more: Is it possible for a father to give up a child voluntarily?
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.
Rules for drawing up receipts
A receipt can be used to confirm the direct fact that funds were transferred from one person to another. It replaces the act of acceptance and transfer, and is often used when performing various operations related to the transfer of money.
Important! The receipt is usually drawn up in person, indicating information about the parties and the amount of money being transferred, and is then attached to the agreement. Usually the data in this document is indicated:
- information about the donor and recipient;
- passport details of these people;
- the immediate amount of money transferred as a gift, as well as the method of this transfer;
- signatures of two parties to the transaction.
The court recognizes this document as valid even if it does not contain citizens’ passport data.
Notarization of the contract
When transferring funds free of charge, you can use an agreement, but it is not necessary to notarize it, since this process is considered expensive, and even without certification, the document will have legal force.
Important! Typically, notarization is required if the donor obliges the recipient to spend money for some purpose , however, in such a situation, not a gift agreement will be drawn up, but a slightly different contract, since there are conditions for the person receiving the money.
To register a transaction with a notary, you need to spend a fairly significant amount, but if the document is lost by the parties, they can order a copy from the notary. A notary can also be involved in court to confirm the authenticity of the contract.
Is tax paid on donated funds?
There is no need to pay tax, and the following factors do not matter:
- the presence of family ties between people;
- gift size.
How to draw up a gift agreement? Step by step instructions in this video:
This way, each person can give another person any amount of money without each party having to pay tax.
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.
Why do you need a deed of gift for money?
Real estate and some other objects are transferred from the donor to the donee on the basis of an appropriate agreement. However, an agreement on a gratuitous gift is sometimes concluded for a certain amount of money. This is due to several factors:
- indication of the law;
- the desire of the donor or recipient.
The first case has several examples specified in the Civil Code of the Russian Federation:
- if the gift is transferred by a legal entity and its value is more than 3,000 rubles, then it must be formalized in writing;
- if the transfer of funds is intended now, and the agreement contains a promise of a gift in the future.
In other cases, the law allows the transfer of money as a gift without documentation.
This is exactly what happens in everyday life when a small amount is given or the donor is not interested in the intended use of the donated funds.
Most often, a deed of gift is drawn up for the purpose of protecting the property interest of the donee and protecting against encroachment on the subject of the gift by third parties. It is also advisable to document the transaction if there is a target direction of financial resources transferred free of charge.
As a result, you can transfer a certain amount free of charge without drawing up documents. However, in certain cases, recording in writing is required by law. Due to the absence of the obligation to register the transfer of rights to the transferred object, the costs of the parties are minimal.
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.
Gift deed for money from parents
A money gift agreement, in which one of the parents acts as the donor and a child as the donee, is often drawn up. In most cases, such an agreement is concluded when a gift of money is transferred for the purchase of an apartment by children. It is drawn up according to the general rules for drawing up a deed of gift.
Such an agreement will not cost anything not only in terms of execution, but also after. If you draw it up yourself, without notarization, the execution of the contract is free. There is no tax on accepting gifts from close relatives.
Thus, a deed of gift for money can be drawn up when required by law or when the participants in the gift transaction themselves desire it. The rules for its preparation coincide with the rules for drawing up a regular agreement under the Civil Code of the Russian Federation. In addition, drawing up a deed of gift for money between close relatives will not cost anything, since acceptance of the gift in this case is not subject to taxes.
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.
Donating money to a relative
Circumstances that should be taken into account when making a transaction:
- First of all, you need to be sure that the recipient will agree to accept the gift, because he has the right to refuse funds even when the transaction has begun to be formalized, but before the transfer of the gift occurs. This point is enshrined in Article 573 of the Civil Code of the Russian Federation;
- It is recommended to give money verbally, provided that the amount of money is small;
- the fact of transfer of funds can be recorded with the signatures of two witnesses;
- you can get by with drawing up an agreement and a receipt for receiving funds in two copies, with the signatures of the parties and witnesses;
- The spouse's consent to donate funds is not required. But if there is a possibility of problems arising, then at the stage of document preparation it is worth obtaining his consent, certified by a notary.
Features of the gift agreement:
- gratuitousness (absence of counter obligations) of the transaction means that the donee will not have any obligations associated with receiving the gift, and the donor will not retain any rights to this property. Thus, the donee is enriched at the expense of the donor. If there is a counter transfer, then this transaction will not be a donation;
- the parties must be legally capable and aware of their actions at the time of the transaction;
- children from 6 to 14 years old can be donees, since they are capable of making transactions related to the gratuitous receipt of benefits (Article 28 of the Civil Code of the Russian Federation);
- minors from 14 to 18 years old can act as donors of money if the amount does not exceed the amount of their scholarship, salary or other income (Article 26 of the Civil Code of the Russian Federation).
Attention
In order to give money to a relative, you should pay attention to the amount you plan to give as a gift.
In this case, there are two options:
- transfer funds into the hands of the donee, or transfer them to an account by verbally warning about this event;
- enter into a cash donation agreement - this is worth doing when donating large sums in order to reduce the risk of legal problems in the future. Better yet, register such a transaction with a notary. After this, it will be almost impossible to challenge it.
Example
- The parents decided to give money for the wedding to the newlyweds. The money was packed in a gift envelope and handed into the hands of the newlywed couple. From the moment they received the envelope, the newlyweds became the owners of these funds. The procedure for donating money for a wedding took place verbally.
- The grandmother decided to give her granddaughter money in the amount of 200 thousand rubles. Because the amount is significant, they decided to formalize the transaction in writing, by concluding a gift agreement. After signing the agreement, the amount of money passed into the hands of the granddaughter. The donation procedure took place in writing.
Important
In accordance with clause 18.1 of Art. 217 of the Tax Code of the Russian Federation, income in cash and in kind received by taxpayers from individuals as a gift is not taxed.
