Templatesic-arrow Business ic-arrow Gift Letter PDF Template

Gift Letter PDF Template

What Is a Gift Letter?

A gift letter is a document that formally states that money or a valuable item given to someone is genuinely a gift and not a loan or an advancement that needs to be repaid. These letters are most commonly used in mortgage processes when a family member or close friend provides funds to help an individual purchase a home.


Key Components of a Gift Letter


  1. Donor's Information: The name, address, and contact information of the person giving the gift.

  2. Recipient's Information: The name and contact information of the person receiving the gift.

  3. Relationship: A statement clarifying the relationship between the donor and the recipient.

  4. Gift Details: Specific information about the gift, including the exact amount of money or a description of the item, and the date of the gift.

  5. Purpose: A statement clarifying the purpose of the gift. For instance, if it's for a home purchase, the property's address might be mentioned.

  6. Statement of No Repayment: A clear declaration that the gift is being given without any expectations of repayment or obligations.

  7. Donor's Financial Institution: Information about the bank or financial institution from which the gift is sourced, including account details if relevant (especially for mortgage processes).

  8. Signature: Both the donor and recipient may need to sign the letter, depending on its purpose.


Key Purposes of a Gift Letter


  1. Mortgage Process: Lenders often require a gift letter when a portion of the funds used for a down payment on a property is a gift. This ensures the money isn't an undisclosed loan that might affect the borrower's financial risk.

  2. Tax Purposes: In some situations, to clarify for tax authorities that funds or property received wasn't income but a gift, which may have different tax implications.

  3. Legal Clarity: To provide a written record that can protect against future disputes or misunderstandings regarding the nature of the transferred funds or property.


A gift letter serves as a formal declaration that a transaction is genuinely a gift, ensuring transparency and clarity for financial and legal processes. When using a gift letter, especially in formal settings like a mortgage application, it's essential to ensure that all details are accurate and that the document meets any specific requirements set by the involved institutions.


Download the best PDF Reader Pro to fill out the form
Free Download