Gift Letter Format

A gift letter is a written document stating that money received is a gift. The funds could be from a friend or relative. It is often given to a recipient to help them make a down payment for a new home or real estate property. When writing a gift letter, lenders do not expect a refund or payment in any shape, way, or form. They also cannot claim the bought property.

Gift letters are essential in helping us achieve our dreams. They allow us to get help from our loved ones to purchase a property we aspire to own. Are you planning to give a loved one a money gift? This article explores how to write an appropriate gift letter.

The source of a gift letter is of utmost concern. Generally, you can receive a gift letter from a friend, family member, organization, or public entity. However, the donor cannot be the seller of the property you wish to purchase unless they are a family member.

The donor of a gift should also have a clearly defined and documented interest to the recipient.

What Should You Include in a Gift Letter?

A gift letter does not carry debt. The recipient is not expected to pay back the amount in any way. For legitimacy, a typical gift letter should contain the following:

  • The donor’s name, address, and contact details
  • The donor’s relationship to the recipient
  • The amount of gift to be transferred to the recipient
  • The address of the property the recipient will buy with the gift
  • A declaration that the given gift is not a loan and should not be repaid.

Gift Letter Format


{Name of Bank/Lender}

{Address of Bank/Lender}

I/We {gift giver’s name(s)} hereby make a gift of {nature and amount of gift} to {recipient’s name}. {Recipient’s name} is our {relationship to the recipient}. He/she will apply the gift toward the purchase of property located at {house address}.

I/We do not expect any repayment for this gift in the form of cash or future services. Additionally, I/we will not file any lien against the property.

The source of this gift is {bank/investment/another account}

Signature of Donor(s): _________________

{Name of Donor(s)}

Donor’s Address: {Street, City, State, Zip}

{Telephone Number(s) of Donor(s)}

{Donor’s Email Address}

Sample Gift Letter

3 July,2032

Ohio National Bank

Celine street, TX 34567

I Chelsea Baker intend to make a GIFT of $4,000 to Maxwell Smith. Mr. Smith is my nephew. He plans to apply the GIFT towards the purchase of a house located on Red Creek Street, TX 10640.

No repayment is implied or expected from this gift either in the form of cash or future favors. I will also not file any lien against the property.

The source of this GIFT is my estate, the Baker House.

Chelsea Baker,

London Park, OH 39300

0(900) 4500 3000

Gift Letter Samples and Templates

The writing of gift letters is regulated by several regulations and requirements. The provisions may also vary from state to state. Additionally, a gift letter is a legal document that can be used in legal processes. Because of the nature of this correspondence, it is best to practice care when drafting one.

Gift Letter (Word Template)

File Format
  • MS Word

Money Gift Letter

A money gift letter is a correspondence showing that you have gifted someone with cash. The recipient can use the money for whatever purpose.
File Format
  • MS Word

Gift Letter for Mortgage

When buying a property, your mortgage company will require a down payment to lend you money. You can send a signed gift letter to your lender to complete your down payment.
File Format
  • MS Word

Gift Letter for Car

In some states, you can exchange the ownership of a vehicle through a gift letter. A close friend or relative should have previously owned the car.
File Format
  • MS Word

Gift Letter for Land

This letter is also called a Deed of Gift. It is a document that signifies the voluntary transfer of property from a donor to a recipient without any compensation or consideration from the latter.
File Format
  • MS Word

Wrapping Up

We all aspire to different things in life. Sometimes, however, we may be unable to afford them. Gift letters are an excellent way to get help from friends and family. They are also an effective way to help others achieve their dreams. When drafting a gift letter, remain formal and professional. Don’t stray from the point of the message. Also, make sure to address the letter appropriately and include your contact information.