Gift Deed - Alabama

GIFT DEED

State of Alabama

Prepared By:
_____________________________________________
_____________________________________________

After Recording Return To:
_____________________________________________
_____________________________________________
_____________________________________________

Send Subsequent Tax Statements To (Grantee):
_____________________________________________
_____________________________________________

Parcel Identification Number:
_____________________________________________

SPACE ABOVE THIS LINE FOR JUDGE OF PROBATE'S USE

DOCUMENT INFORMATION

GIFT DEED

STATE OF ALABAMA
COUNTY OF _________________

KNOW ALL MEN BY THESE PRESENTS:

This Gift Deed is made this _____ day of _________________, 20_____.

ARTICLE I: PARTIES

Section 1.1 Donor (Grantor)

_____________________________________________
(Name)

of _____________________________________________
(Address)

Marital Status (complete for an individual grantor; Ala. Code § 35-4-73):
☐ A single person
☐ A married person (spouse joining below — required if this property is the marital homestead; see Ala. Code § 6-10-3)
☐ Husband and wife
☐ A widow/widower
☐ A _________________ [entity type], organized under the laws of _________________ [state]

hereinafter called "GRANTOR" or "DONOR"

Section 1.2 Donee (Grantee)

_____________________________________________
(Name)

of _____________________________________________
(Address — required so subsequent tax statements may be mailed to Grantee)

Vesting:
☐ A single person
☐ A married person
☐ Husband and wife, as joint tenants with right of survivorship
☐ As joint tenants with right of survivorship
☐ As tenants in common
☐ A _________________ [entity type], organized under the laws of _________________ [state]

hereinafter called "GRANTEE" or "DONEE"

Section 1.3 Relationship of the Parties

The Grantee is the Grantor's: _____________________________________________
(e.g., child, grandchild, spouse, sibling, parent, or other natural object of the Grantor's bounty)

ARTICLE II: CONSIDERATION AND GIFT

Section 2.1 Consideration Recital

This conveyance is made for and in consideration of the natural love and affection the Grantor has and bears for the Grantee, and for no monetary consideration.

THIS IS A BONA FIDE GIFT. THE GRANTOR HAS RECEIVED NOTHING OF VALUE IN RETURN.

Section 2.2 Gift Statement

The Grantor hereby makes a present, voluntary, and irrevocable gift of the real property described herein to the Grantee. The Grantor intends to and does presently divest himself/herself/itself of all right, title, and interest in the property and to vest the same in the Grantee.

ARTICLE III: CONVEYANCE

Section 3.1 Granting Clause

WITNESSETH: That the GRANTOR, for and in consideration of the natural love and affection set forth above and no monetary consideration, does hereby GIVE and CONVEY unto the said GRANTEE, and GRANTEE's heirs and assigns forever, the following described real property situated in _________________ County, State of Alabama, to-wit:

Section 3.2 Legal Description

See Exhibit "A" attached hereto and incorporated herein by reference.

Derivation of Title (include prior instrument reference; confirm county recording requirements):
Being the same property conveyed to GRANTOR by _________________________ [prior grantor] by deed dated _________________, recorded in ☐ Deed Book _______ at Page _______ ☐ Instrument No. _________________ in the Office of the Judge of Probate of _________________ County, Alabama.

Property Address: _____________________________________________

Parcel Identification Number: _____________________________________________

TOGETHER WITH all and singular the tenements, hereditaments, and appurtenances thereunto belonging, or in anywise appertaining.

ARTICLE IV: WARRANTY ELECTION

Select ONE:

Section 4.1 ☐ OPTION A — Limited (Special) Warranty Against Grantor's Own Acts

The GRANTOR covenants with the GRANTEE that GRANTOR has not done or suffered anything whereby the property is encumbered, and that GRANTOR WILL WARRANT AND DEFEND the title to the same unto the GRANTEE, GRANTEE's heirs and assigns, against the lawful claims of all persons claiming by, through, or under the GRANTOR, but none other.

Section 4.2 ☐ OPTION B — Quitclaim (No Warranty)

The GRANTOR conveys only such right, title, and interest as the GRANTOR may have in the property, WITHOUT ANY WARRANTY OF TITLE, express or implied. It is expressly agreed, pursuant to Ala. Code § 35-4-271, that the words used in this conveyance shall NOT be construed as any covenant of warranty, seisin, or against encumbrances. The GRANTEE accepts the property in its present condition, "AS IS."

ARTICLE V: EXCEPTIONS AND RESERVATIONS

Section 5.1 Subject To

This conveyance is made subject to:

(a) Ad valorem taxes for the year 20_____ and subsequent years;

(b) All applicable zoning ordinances, building codes, and governmental regulations;

(c) All restrictions, covenants, conditions, easements, rights-of-way, and reservations of record;

(d) All matters disclosed by an accurate survey and inspection of the property;

(e) Any existing mortgage, deed of trust, or lien of record. NOTICE TO DONEE: If any mortgage or lien remains on the property, the Grantee takes the property SUBJECT TO that encumbrance unless released. The Grantor's gift does not satisfy or assume any such debt unless expressly stated.

(f) The following specific exceptions:

☐ None

☐ As set forth below:
_____________________________________________
_____________________________________________
_____________________________________________

ARTICLE VI: DELIVERY AND ACCEPTANCE

Section 6.1 Delivery

The Grantor delivers this Gift Deed to the Grantee as a present gift.

Section 6.2 Donee's Acceptance (Optional Written Evidence)

The undersigned GRANTEE/DONEE hereby ACCEPTS this gift of real property.

_____________________________________________ (Acceptance)
Signature of Grantee/Donee

_____________________________________________
Printed Name

Date: _____________________________________________

ARTICLE VII: FEDERAL GIFT-TAX NOTE

FEDERAL TAX NOTE. Section 2501 imposes federal gift tax on covered transfers by an individual donor, subject to statutory exceptions. This deed alone does not establish whether a return or tax payment is due. Check the transfer date, actual value, prior gifts, applicable exclusions and deductions, and current IRS Form 709 instructions.

BASIS NOTE. Under 26 U.S.C. § 1015(a), the donor's adjusted basis generally carries over for gain, but the gift-date fair market value may control for loss when lower. Preserve the donor's basis and gift-date value records.

Consult a qualified tax advisor or CPA before completing this gift.

ARTICLE VIII: TRANSFER (RECORDATION) TAX DECLARATION

Section 8.1 Alabama Recordation Tax (Ala. Code § 40-22-1)

IMPORTANT — AN UNSOLD GIFT IS NOT TAXED AT ZERO MERELY BECAUSE ITS PRICE IS ZERO. For an unsold conveyance, Ala. Code § 40-22-1(c) requires proof of the property's actual value. The nominal-consideration exemption in subsection (b)(2) applies to deeds made for the purpose of perfecting title; a gift label alone does not establish that purpose. Calculate the tax on the applicable value, taking account of the statute's mortgage, vendor-lien, and other exceptions, and confirm the amount with the Judge of Probate.

Transfer Tax Rate: $0.50 per $500 of value (or fraction thereof) — effective rate 0.1% / $1.00 per $1,000.

Actual Value of Property Conveyed: $_____________________

Recordation Tax Due: $_____________________

Section 8.2 Real Estate Validation Form

☐ Alabama Department of Revenue actual-value attestation form attached under Ala. Code § 40-22-1(c), stating the actual value of this unsold property.

ARTICLE IX: EXECUTION

Section 9.1 Grantor's Signature

IN WITNESS WHEREOF, the GRANTOR has hereunto set GRANTOR's hand and seal this _____ day of _________________, 20_____.

GRANTOR(S) / DONOR(S):

_____________________________________________ (SEAL)
Signature

_____________________________________________
Printed Name

_____________________________________________ (SEAL)
Signature

_____________________________________________
Printed Name

SPOUSE (required if property is the marital homestead — see Ala. Code § 6-10-3; spouse must also be separately acknowledged):

_____________________________________________ (SEAL)
Signature

_____________________________________________
Printed Name

ARTICLE X: ACKNOWLEDGMENT

Section 10.1 Alabama Acknowledgment (Individual)

STATE OF ALABAMA
COUNTY OF _________________

I, the undersigned authority, a Notary Public in and for said County in said State, hereby certify that _________________________, whose name(s) is/are signed to the foregoing conveyance, and who is/are known to me, acknowledged before me on this day that, being informed of the contents of the conveyance, he/she/they executed the same voluntarily on the day the same bears date.

GIVEN under my hand and seal this _____ day of _________________, 20_____.

_____________________________________________
Notary Public

_____________________________________________
Printed Name of Notary

My Commission Expires: _____________________________________________

[NOTARIAL SEAL]

Section 10.2 Alabama Acknowledgment (Entity)

STATE OF ALABAMA
COUNTY OF _________________

I, the undersigned authority, a Notary Public in and for said County in said State, hereby certify that _________________________, whose name as _________________________ [title] of _________________________ [entity name] is signed to the foregoing conveyance and who is known to me, acknowledged before me on this day that, being informed of the contents of the conveyance, he/she, as such officer and with full authority, executed the same voluntarily for and as the act of said entity.

GIVEN under my hand and seal this _____ day of _________________, 20_____.

_____________________________________________
Notary Public

_____________________________________________
Printed Name of Notary

My Commission Expires: _____________________________________________

[NOTARIAL SEAL]

Section 10.3 Alabama Acknowledgment (Homestead Spouse, If Applicable)

STATE OF ALABAMA
COUNTY OF _________________

I, the undersigned authority, a Notary Public in and for said County in said State, hereby certify that _________________________, spouse of the Grantor, whose name is signed to the foregoing conveyance and who is known to me, personally appeared before me and, being informed of its contents, acknowledged that he/she voluntarily signed and assented to the conveyance.

GIVEN under my hand and seal this _____ day of _________________, 20_____.

_____________________________________________
Notary Public

_____________________________________________
Printed Name of Notary

My Commission Expires: _____________________________________________

[NOTARIAL SEAL]

EXHIBITS

EXHIBIT A - LEGAL DESCRIPTION

Legal Description of Property:

Situated in _________________ County, State of Alabama:

_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________

Parcel Identification Number: _____________________________________________

ALABAMA RECORDING REQUIREMENTS AND INFORMATION

Recording Requirements

Important Alabama Notes

1. Recordation tax is value-based. For an unsold gift, calculate any tax due from the property's actual value, subject to the statute's exceptions and adjustments (Ala. Code § 40-22-1). Do not assume a "no consideration" gift is tax-exempt.

2. Marital Status / Homestead: All individual grantors must state marital status for recording (Ala. Code § 35-4-73). Separately, if the married Donor conveys that Donor's homestead, the spouse's voluntary signature and assent, shown by an acknowledgment certificate, is required for a valid homestead conveyance (Ala. Code § 6-10-3).

3. Derivation Clause: Include the prior deed reference and confirm the recording county’s requirements; Houston County expressly requires a derivation clause.

4. Warranty words trigger covenants. Under Ala. Code § 35-4-271, "grant, bargain, sell" imply covenants unless the deed clearly provides otherwise (see Article IV).

5. Title Insurance: A gift deed gives the donee limited or no warranty; the donee should consider title insurance.

6. Legal Counsel: Consultation with a licensed Alabama attorney is recommended.

THIS INSTRUMENT PREPARED BY:

_____________________________________________
Name

_____________________________________________
Address

_____________________________________________
Phone

_____________________________________________
Alabama State Bar Number (if attorney)

SOURCES AND REFERENCES

• Alabama Legislature, Ala. Code §§ 35-4-20, 35-4-23, 35-4-29, 35-4-50, 35-4-62, 35-4-73, 35-4-110, 35-4-271, 6-10-3, and 40-22-1 — https://alison.legislature.state.al.us/
• Houston County Probate Court, Recording Requirements — https://houstoncountyal.gov/probate/recording_requirements/
• 26 U.S.C. § 2501 (gift tax) and § 1015 (basis of gifted property) — https://www.govinfo.gov/app/collection/uscode/2024

This template is provided for informational purposes only and does not constitute legal advice. Consult with a licensed Alabama attorney before using this form.