Gift Deed

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 (Required per Ala. Code § 6-10-3):
☐ A single person
☐ A married person (spouse joining below to release homestead/marital rights)
☐ 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 (the recited sum of $0.00 / nominal Ten and No/100 Dollars ($10.00) being acknowledged as nominal only).

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. The Grantee accepts this gift, as evidenced by the Grantee's acceptance set forth in Article VI below.

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, GRANT, 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 (Required):
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

A gift of real property is not complete until the deed is delivered by the Grantor with present donative intent and accepted by the Grantee. The Grantor declares that this Gift Deed is delivered to the Grantee (or recorded for the Grantee's benefit) as a completed, present gift.

Section 6.2 Donee's Acceptance

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 GIFT TAX (NOTICE TO DONOR). A gift of real property may be a reportable gift for federal gift-tax purposes (26 U.S.C. § 2501 et seq.). The donor — not the donee — is generally responsible for any federal gift tax (26 U.S.C. § 2502).

• Annual exclusion: $19,000 per donee for 2026 (indexed). A gift of real estate to one donee typically exceeds this, so the donor will usually need to file IRS Form 709 (United States Gift Tax Return).
• Lifetime exemption: $15,000,000 per donor for 2026 (26 U.S.C. § 2010(c)(3), as amended). Reporting a gift does not necessarily mean tax is owed; the taxable amount is applied against this lifetime exemption.
• Carryover basis (26 U.S.C. § 1015): The donee generally takes the donor's adjusted cost basis (a "carryover" basis), NOT a stepped-up basis. This can create capital-gains tax for the donee on a later sale. Inherited property, by contrast, may receive a stepped-up basis.

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 — ALABAMA RECORDATION TAX IS VALUE-BASED, NOT PRICE-BASED. Unlike many states, Alabama's deed recordation tax under Ala. Code § 40-22-1 is computed on the actual value of the property conveyed, not on the consideration paid. A gift deed (no money paid) is therefore generally NOT exempt — recordation tax is still due, computed on the property's actual value. The narrow exemption in § 40-22-1(b)(2) applies only to deeds executed "for a nominal consideration for the purpose of perfecting the title," which a true gift is not. Expect to pay recordation tax based on the property's fair market value. Confirm 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

☐ Real Estate Validation Form attached (required per Ala. Code § 40-22-1, effective August 1, 2012), stating the actual value of the property (a gift has no purchase price, so the actual value must be attested).

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 (if applicable — joining to release homestead/marital rights per Ala. Code § 6-10-3):

_____________________________________________ (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 _________________________, who is known to me as the _________________________ [title] of _________________________ [entity name], and who is known to me, acknowledged before me on this day that, being informed of the contents of the conveyance, he/she executed the same voluntarily as the act and deed of said entity 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]

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. A gift deed still owes recordation tax computed on the property's actual value (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; spousal signature is required to convey homestead (Ala. Code § 6-10-3).

3. Derivation Clause: Must show how Grantor acquired title.

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

• Ala. Code § 35-4-271 (construction of "grant, bargain, sell") — https://law.justia.com/codes/alabama/title-35/chapter-4/article-11/section-35-4-271/
• Ala. Code § 40-22-1 (recordation tax on deeds; value-based) — https://law.justia.com/codes/alabama/title-40/chapter-22/section-40-22-1/
• Alabama Department of Revenue, Recordation Tax — https://www.revenue.alabama.gov/tax-types/recordation-tax/
• Ala. Code § 6-10-3 (spousal signature for homestead)
• IRS, What's New — Estate and Gift Tax (2026 exclusion amounts) — https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax
• 26 U.S.C. §§ 2501, 2502 (federal gift tax); § 1015 (carryover basis)

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