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It is said that gifts or presents are made for the pleasure of who gives them, not the merits of who receives them. However, receiving gifts is not just for merit as there probably isn’t a single person on this planet who doesn’t like receiving gifts. And it is just polite and thoughtful to send a Thank You Letter in return for receiving a gift.
Just as receiving a gift would make you happy, the sender of the gift would appreciate knowing about your gratitude for the same. A thank you letter is the best way to show that gratitude. Even though they take only a few minutes to write, thank you letters carry a lot of weight. Personal thank you letters can make someone else feel appreciated and cherished, while formal thank you letters can help you stand out from the crowd.
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A gift letter is a written document that expressly states the money you have received from a family member, friend, or client is a gift and not a loan. It’s also a confirmation that your downpayment for purchasing a property is actually a gift.
Your gift letter should include the following:
1. Donor’s name, address, and contact information
2. Relationship of the donor and recipient
3. Amount of gift
5. Declaration of no repayment needed
6. Donor’s signature
7. Property address
It’s not necessary to notarize your gift letter. However, you may consult your lawyer just to make sure that you’re doing the right thing.
A gift letter is required as it allows the donor to avoid paying a big federal gift tax once the transfer is done. Without the gift letter, the Internal Revenue Services may tax the donor with an overwhelming amount based on the gift.
Since a gift letter is final, the donor cannot anymore get his/her money back. Hence, this document is legally enforceable.