Affidavit of Gift

An Affidavit of Gift is a sworn statement confirming that property was transferred from one person to another as a gift, with no payment or consideration exchanged, and it is most often used to register a gifted vehicle or to document a gift for tax purposes. State motor vehicle agencies frequently require an Affidavit of Gift when a car, boat, or other titled vehicle changes hands within a family, because a bona fide gift can exempt the transfer from sales or use tax that would otherwise apply to a sale. The affiant, usually the donor, swears under penalty of perjury before a notary public that the transfer is a genuine gift and lists the property, the parties, and their relationship. Beyond vehicles, the document also helps establish the gift nature of money or property for estate planning and to support gift tax reporting under the Internal Revenue Code.

An Affidavit of Gift can exempt a vehicle transfer from sales or use tax in many states, because a genuine gift involves no purchase price on which tax would be calculated. State DMVs typically require the affidavit to confirm the transfer was truly gratuitous, and several states limit the exemption to gifts between close family members such as spouses, parents, children, or siblings. The donor and sometimes the recipient sign under penalty of perjury, and the DMV uses the affidavit to register the vehicle in the recipient's name without assessing tax on a stated value. Because rules and qualifying relationships vary by state, the recipient should confirm local requirements before relying on the exemption, including whether a separate odometer disclosure or title assignment is also needed. A false claim of gift to avoid tax can lead to penalties and back taxes.

An Affidavit of Gift documents a transfer that may carry federal gift tax consequences when the value exceeds the annual exclusion set by the Internal Revenue Service, which is adjusted periodically for inflation. Gifts within the annual exclusion amount per recipient generally require no reporting, while larger gifts require the donor to file IRS Form 709, even though tax is rarely owed until lifetime gifts surpass the unified estate and gift tax exemption. The affidavit itself does not create or eliminate tax liability; it records the gift nature of the transfer to support both DMV tax exemptions and any required federal filing. Spouses who are U.S. citizens can generally gift unlimited amounts to each other without tax. Because thresholds change annually and state rules differ, donors making substantial gifts should confirm the current exclusion amount and reporting obligations before relying solely on the affidavit.

An Affidavit of Gift is signed by the donor making the gift, and many state agencies also require the recipient to sign to acknowledge acceptance, with both signatures made before a notary public. Notarization is generally required because the affidavit is a sworn statement attesting that no money or consideration changed hands, and DMVs and tax authorities rely on that oath to grant a tax exemption. The notary verifies each signer's identity, witnesses the signatures, and completes a jurat with a seal. Some states provide their own gift affidavit form that must be used for vehicle transfers, so the parties should obtain the correct version from the relevant motor vehicle agency. Because the statement is made under penalty of perjury, both parties should confirm the gift is genuine and that no offsetting payment, debt forgiveness, or trade is involved before signing and notarizing the document.

An Affidavit of Gift should contain the full names and addresses of the donor and recipient, their relationship, a clear description of the gifted property, and an express statement that the transfer is a gift made without payment or consideration. For a vehicle, the description must include the year, make, model, and vehicle identification number, along with the date of transfer, so the DMV can match it to the title assignment. The affidavit should affirm that no money, services, or debt forgiveness was exchanged, since that is the core fact establishing the gift. The donor signs under penalty of perjury before a notary public, and the recipient often signs to acknowledge acceptance. Including accurate values helps support any required federal gift tax reporting on IRS Form 709. Because state DMV formats differ, the parties should confirm the required fields and use the official form where one is mandated.