The gift deed is a legal document, which means that it needs to follow a certain format, and can be contested in the court of law. Being a legal document there are a few things to be kept in mind when drafting the gift deed.
The gift deed is drafted by the person giving the property as a gift or the donor. The gift deed speaks of his willingness to give that specified asset away, in return for no consideration and completely out of love and affection for the person receiving the gift or the donee. The donor's signature is often not enough and signatures of witnesses too are essential. While the number of witnesses may vary depending on the rules of the state, normally two witnesses are enough to seal the deal. The witnesses, of course, cannot be people who have material interest in the property themselves and as such need to be disinterested parties that stand to gain nothing from the contents of the gift deed. For example, the donee cannot pose as the witness as he directly acquires the ownership as a result of the deed. Lastly, the gift deed also contains the signature of the donee signifying his acceptance of the gift.
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