Gift Letter
 |
Definition of 'Gift Letter'Written correspondence to a lender stating that money received from a friend or relative is a gift. Gift letters typically come into play when a borrower has received assistance in making a down payment on a new home or other real estate property. Such letters also explicitly state that the money received is not expected to be paid back in any way, shape or form. |
 |
Investopedia explains 'Gift Letter'Gift letters are important because, in general, lenders tend to frown upon borrowers using additional borrowed money for a down payment on a home or other property. "Gifted" money, however, is a different story. This is why the letter must reference the fact that the money is, in fact, a gift and not a loan. Furthermore, the letter must be written by the gift giver to have any validity. One's relationship with the receiver is also disclosed in most gift letters. |
Related Definitions
Articles Of Interest
-
Why You Shouldn't Die In 2013
Increases in estate tax rates and possible fiscal cliff implications will make things more difficult when it comes to arrangements for your death. -
Tax-Efficient Wealth Transfer
Taxpayers with large taxable estates were required to take steps to reduce them before 2011. -
What To Do When You're Left Out Of A Will
Discover the legal steps you can take if you are left out of a will and if fighting is worth the effort. -
Tax-Saving Advice For IRA Holders
Be informed about benefits and deductions that may apply to you and avoid costly mistakes on your return. -
Relationships And Retirement Planning
Older couples have many things to consider when it comes to financial planning, including wills and estate planning. -
What Is A Will And Why Do I Need One?
Putting this document together will save your family time and money, and give you peace of mind. -
Protect Your Personal Assets
A family limited partnership (FLP) can go a long way toward securing your family's property. -
I want to transfer my house title to my child, what are the costs and tax consequences of doing so?
The costs associated with a deed transfer will vary by state and by how the transfer is accomplished. Filing a deed yourself may be the cheapest method, but it will require quite a bit of homework ... -
5 Misconceptions About A Fiduciary
Having knowledge of what a fiduciary is will not only impress your friends at a party, but it will also help you understand what you should expect from your broker. -
Gifting Your Retirement Assets To Charity
There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed.
Free Annual Reports
