Ten documents and records worth preparing before making a gift within the family.
Even a gift between family members can lead to a gift tax filing or, sometimes, disagreement among relatives later on. This list is organized around what to document and prepare once a gift is decided โ what each piece of paperwork actually proves.
That said, deduction limits, filing deadlines, and valuation methods for gift tax can change as tax law is revised. This list is general guidance for getting organized, not a substitute for advice on your specific situation โ before filing or transferring any asset, check the latest guidance on Hometax (the National Tax Service's portal) and consult a licensed tax accountant.
01
Gift agreement
The most basic document โ who is giving what to whom, when, and under what conditions. If the gift comes with a condition attached (like the recipient also taking on a debt), spell out that condition and how it could be undone, so there's less room for dispute later.
02
Bank transfer records for the gifted funds
A transfer record shows exactly when money moved and between whom, which matters for proving the timing of a gift. Cash handed over in person is much harder to document later, so keep some form of written confirmation if that's how it happened.
03
Valuation statement for the gifted asset
This lays out how the asset's value is calculated as of the gift date. Assets with multiple possible valuation methods, like real estate or unlisted shares, are worth reviewing with a tax accountant before you settle on a figure.
