Making a deed of gift in favor of your children is a fairly common procedure among our compatriots. It allows you to transfer property in a simple and convenient way in favor of your daughter or son, eliminating the possibility of a regime of common ownership of it and the obligation to pay taxes, allows you to keep property in the family by formally changing its owner, etc.
The form of the transaction will depend on the item being transferred. Thus, donation of money can occur orally. When transferring a car or apartment to a daughter or son, it is impossible to do without a written agreement and subsequent re-registration of the property to the new owner. As for income tax , it does not need to be paid for transactions between close relatives.
Registration of donation of property to a daughter or son
The procedure for registering a gift in favor of a daughter or son is carried out according to the general rules characteristic of all standard deeds of gift, but may have some peculiarities.
Additionally
According to Art. 574 of the Civil Code of the Russian Federation, most gift agreements made in favor of children and executed simultaneously with their completion can be oral . The exception is cases of concluding contracts of promise of donation (clause 2 of Article 574 of the Civil Code) and donation of real estate , since it requires state registration (Article 131 of the Civil Code). Notarization is not mandatory, but will help confirm the legality of the transaction.
In addition to the form, the requirements regarding the content of the contract are no less important. So, according to Art. 432 of the Civil Code, the contract must specify the subject of the contract (gift), its main features, cost, obvious shortcomings and other individualizing characteristics must be indicated. When promising a gift, the contract must contain the donor’s clearly expressed intention to fulfill the gift in the future (clause 2 of Article 572 of the Civil Code).
In addition to the subject matter, the agreement must contain the procedure for transferring the gift to the daughter or son. As part of this, the conditions under which the gift will be transferred, the method of transfer (clause 1 of Article 574 of the Civil Code) and the timing of the contract are determined. It is also advisable to determine the documents transferred with the gift and the procedures to be followed. If the legal representatives of a daughter or son, as well as guardianship authorities, are involved in the transaction, then this must be indicated in the contract.
Among other things, an agreement may contain various kinds of annulling or suspensive conditions (Article 157 of the Civil Code), rights and obligations of the parties to the transaction, grounds for termination or amendment of the agreement, transitional provisions, dispute resolution procedures, etc.
Giving an apartment to a daughter or son
The peculiarities that arise when donating an apartment in favor of a daughter or son depend on a number of factors - the peculiarities of the civil turnover of real estate, taxation when donating between close relatives, the extent of the children’s legal capacity, etc. All of them together require accounting, which is a condition for the validity of the transaction.
Important
According to Art. 131 of the Civil Code, the transfer of real estate under a gift agreement requires subsequent state registration of rights to it, carried out by the Rosreestr authorities. In view of this, an apartment donation agreement must always be in writing .
In addition to the written form, the need for state registration may affect the possibility of independent participation of a daughter or son in a transaction. In particular, if the donee is a minor, then a legal representative (the second parent, and in his absence, another relative or representative of the guardianship authority) participates in the transaction instead of him. For a minor donor, the parents give written permission to participate, even if the donor is also one of the parents.
As you know, receiving real estate as a gift implies receiving income equal to its market value, which results in the obligation to pay personal income tax. However, since the daughter and son, according to Art. 14 IC, are close relatives of the parents, according to clause 18.1 of Art. 217 of the Tax Code, they are exempt from tax liability.
It often happens that apartments are in common shared ownership of several persons, therefore it is quite possible to donate a share of the apartment (clause 2 of Article 246 of the Civil Code). In this case, there is no need to take into account the opinions of other co-owners of the property. Note that several co-owners can donate all their shares in favor of one donee under one agreement.
The contract itself must contain a detailed description of the apartment - its address, location, floor, condition, number of rooms, area, cadastral and technical passport data, shortcomings and defects. To avoid controversial issues, it is advisable to draw up a transfer deed (Article 556 of the Civil Code).
Example
Widow L. decided to give her son an apartment. However, since the child was a minor, this did not allow him to participate in the gift transaction on his own, which required the participation of a legal representative (Article 28 of the Civil Code). Since L. was his only representative, and the rules of representation (clause 3 of Article 182 of the Civil Code) did not allow her to participate in the person of both the donor and the donee, she turned to the guardianship authorities at the place of residence with a request to appoint another representative of the child to conduct transactions. By decision of the head of the body, the grandfather of the donee, L.’s father, was appointed as such, thanks to which the transaction was finally completed and L.’s son took ownership.
We draw up a deed of gift for a land plot between close relatives in 3 stages
For some services related to the technical side of the issue, the notary provides a 50% discount. And for the preparation and certification of a deed of gift, instead of 1% of the cadastral value of the land plot, 0.3% is charged. In addition, relatives are exempt from taxation . For ordinary citizens, personal income tax payment is set at 13% of the cadastral value of land, excluding foreigners who are forced to pay up to 30%.
Relatives not included in this list are not indicated as such in the gift agreement when determining the parties. However, the donee from whom the tax is levied has the right to submit a similar application with a request to exempt him from paying personal income tax or reduce the tax rate. The reason should be the relationship status and other accompanying reasons. The Inspectorate is not obliged to cooperate in such situations, but allows for the indicated possibilities.
Giving a house to your daughter or son
Gift deeds in favor of children for houses are drawn up no less often than similar agreements for apartments. Since private houses are also real estate, the procedure for registering a deed of gift for them is almost identical.
Attention
Provisions of Art. 35 of the Land Code establishes that if one has ownership rights to a land plot and a residential building standing on it, alienation of one without the other is impossible . This means that if the donor owns both a house and a plot of land, then he cannot give only a house or just a plot of land to his daughter or son.
The transfer of rights to a house by deed of gift requires subsequent state registration (Article 131 of the Civil Code). of a second legal representative in the transaction (Article 28 of the Civil Code). Let us note that his participation must be indicated in the text of the agreement.
In addition, the contract must contain a detailed description of the building and its characteristics that distinguish it from other real estate objects - address, number of floors, area, passport data, condition, etc. It is advisable to reflect any defects in real estate in the transfer deed (Article 556 of the Civil Code).
Since the daughter and son are close relatives of the donor, according to Art. 217 of the Tax Code, they will be exempt from taxation when receiving a private house as a gift. This exemption also applies to cases of transfer of land along with the house.
There are some legal restrictions to consider when donating houses. In particular, according to paragraph 2 of Art. 576 of the Civil Code, when property is in joint ownership, its alienation is permissible with the consent of all co-owners. Based on this and taking into account Art. 35 of the Family Code, when donating a house that is in common ownership of the spouses (Article 256 of the Civil Code) in favor of his son or daughter, the donor must obtain the notarized consent of the second spouse .
When parents donate houses to their children, one can often encounter various types of encumbrances, in particular, the right to live in the donated residential premises. Let us note that such a provision cannot limit the property rights of the donee , including the free disposal of a private house.
How to draw up a deed of gift for a plot of land with a house in the name of a daughter or son
- date and place of the transaction;
- full passport information about the donor and donor;
- cadastral data of the house and plot indicating the exact address and area, number of rooms;
- certificate of ownership of the house and land (with all details), confirming the absence of encumbrance on third parties.
- children under 14 years of age - the deed of gift is signed by legal representatives on behalf of the child, whose presence at the transaction is not required;
- teenagers 16-18 years old - a child can make transactions with written consent
- legal representatives (the deed of gift is signed by the child and his representatives).
We recommend reading: How does a deed of gift differ from a gift agreement?
Donating a plot of land to a daughter or son
As is known, land is the object of special regulation by the state. This is reflected in many things - the purpose of the plots, the features of their design, the features of shared ownership, etc. It is quite obvious that this is also reflected in the procedure for donating land plots in favor of a daughter or son.
Additionally
According to Art. 260 of the Civil Code, only those entities that have ownership rights to land plots that are not seized and not limited in civil circulation can donate a land plot.
Since the land plot is real estate, according to Art. 131 of the Civil Code, after signing the deed of gift, it is subject to state registration , which is carried out by the authorities of Rosreestr. A state duty is charged for its implementation, the amount of which is 350 rubles for the whole plot and 100 rubles for its share (Article 333.33 of the Tax Code).
If there is any building on the transferred land plot, the ownership of which also belongs to the donor, then it must also be transferred to the donee (Article 35 of the Land Code). In this case, the donee is a son or daughter, in accordance with clause 18.1 of Art. 217 of the Tax Code will be exempt from the obligation to pay income tax on the property donated to them.
According to Art. 7 of the Land Code, land plots have a specific purpose, depending on the category to which the legislator classifies them. Having received such a plot as a gift, the recipient will be obliged to use it exclusively within the framework of such a designated purpose .
The donation of land shares —shares in the ownership of agricultural land— deserves special attention According to Art. 12 Federal Law No. 101 dated July 24, 2002, their donation is possible only in favor of the same shareholders as the donor. To donate them in favor of a daughter or son, you first need to carry out the procedure for forming a land plot by allocating it against the existing share (Article 13 of the Federal Law No. 101 of July 24, 2002).
Deed of gift for a land plot
- gift agreement;
- passports of the parties (original, photocopy);
- title papers for the allotment;
- act of acceptance and transfer;
- paper certifying the price of the object (if there is no inventory assessment in the relevant documents);
- documentation certifying family ties with the donee (may be required in exceptional situations);
- a decision from the remaining co-owners, notarized (in a situation of shared ownership or if you are in an official marriage);
- application for registration;
- document confirming payment of state duty.
So, is it possible to issue a deed of gift for land? The preparation of documentation such as a gift deed must be approached with all responsibility. To complete it, you need to collect a certain set of papers. The procedure depends on whether you draw up the deed of gift personally or with the involvement of a specialist.
Giving a car to your daughter or son
Vehicles, like real estate, quite often become donations for the benefit of children. Such a transaction is a simple and convenient way to transfer rights to a car in favor of a daughter or son - it does not require notarization and state registration , allows you to transfer property without additional conditions, eliminates the possibility of joint ownership, etc.
Important
According to Order of the Ministry of Internal Affairs of the Russian Federation No. 1001 dated November 24, 2008, the car must be registered with the traffic police under its owner. To do this, the donee must submit a number of documents, including a gift agreement, as the basis for the emergence of ownership rights. Based on this, the donation of a car is always formalized in writing .
The contract itself must contain a detailed description of the car - make, model, color, engine and body numbers, defects and damage, etc. And in addition, it is advisable to indicate the presence of a close relationship (Article 14 of the Family Code) between the donor and the donee, since in this case, according to clause 18.1 of Art. 217 of the Tax Code, the donee will be exempt from personal income tax.
If there is a promise of a gift, then in addition to written form and an indication of the subject, the contract must contain the clearly expressed intention of the donor to transfer the gift in the future (clause 2 of Article 572 of the Civil Code). In addition, such an agreement may contain conditions precedent (Article 157 of the Civil Code), only upon the occurrence of which the daughter or son will be able to receive the promised car.
In cases where the notarization of the transaction is not carried out, a minor or minor daughter and son can independently participate in the transaction of donating a car (clause 2, clause 2, article 28 of the Civil Code). In this case, the participation of legal representatives is not required.
