A gift is the transfer of a property from one person to another made voluntarily. There are two persons involved in this transfer of property:
I) Donor – The Person who transfers the property.
II) Donee – The Person to whom the property is being transferred.
The donee must accept the property. And, he must accept it during the lifetime of the donor. The gift becomes void, if the donee dies before accepting the gift. A transaction of gift will be complete, only if the donee accepts the gift during the lifetime of the donor.
Who can gift property?
Any person who is the legal owner of a property can make a gift of his property. The gift must be an existing property. It cannot be a future property.
A minor is incompetent to contract, so he can’t transfer a property as a gift. A natural guardian of the minor can accept a gift on behalf of the minor. This amounts to the recognition of the natural guardian of the nominated person as a manager for the purpose of the gift of property.
In case of a minor being a donee, if the gift is troublesome, he cannot forced to accept the gift. But later, he must either accept or return the gift.
Registration of a gift of property:
According to section 123 of The Transfer of Property Act, it is invalid if a gift of a property is not registered. It cannot pass any title to the donee. All the required documents should be stamped and registered. It should be attestation by two witnesses. A gift of property is invalid without a registration done.
According to section 126 of The Transfer of Property Act, a gift shall be revoked if some conditions are met. The condition must be legal. In this case, the donor and donee must have agreed that the gift shall be revoked if some specified events take place. Such an event must not depend on the donor’s will.