Sulyk Roman

Head of family law practice

E-mail

sulyk@prikhodko.com.ua

Phone numbers

An attorney with extensive experience specializing in complex family disputes. As Head of Practice, he combines deep legal expertise with a personalized approach to every client. He ensures strategic protection of family interests and delivers impeccable results in the most challenging cases.

Gift agreement between relatives

What is a gift agreement?

A donation agreement is a contract under which a party (donor) transfers or undertakes to transfer property to another party (donee) for free.

What can be transferred into ownership by a gift agreement??

Real estate (apartments, land, houses)
Movable property (cars, valuables)
Property rights
Cash
Stocks, bonds and other securities

What cannot be transferred into ownership by a gift agreement?

There are certain restrictions in a gift deed regarding what can be donated by a gift deed.

Here is what cannot be transferred into ownership by a gift deed:

Property rights that are inextricably linked to the person of the donor (alimony, pensions, disability payments, etc.).
Property encumbered by the rights of third parties without their consent.
Future property (that which the donor may acquire after the conclusion of the contract).
Objects withdrawn from civilian circulation (weapons without appropriate permits, narcotics, radioactive materials).
Intangible benefits (honor, dignity, health and other personal non-property benefits).
State or municipal property (unless expressly provided for by law).
Business companies that are state-owned.
Cultural heritage sites (in some cases).
Land plots that have special status or restrictions on turnover.
Official housing and certain other property for which restrictions are established by law.

Features of a gift agreement between relatives:

Free of charge: A gift involves the transfer of property without any counterclaim or compensation.
Volunteering: The donor must have complete freedom of will when making the decision to donate.
If property is gifted to a child, the contract is signed by its legal representative.
Contract form: It depends on the subject of the gift. For example, a gift of real estate requires a notarial certificate.
Taxes: Gifts between relatives of the first and second degrees of kinship (parents, children, spouses, brothers, sisters, grandparents, grandchildren) are taxed at a zero rate.

How to draw up a gift agreement?

Prepare documents:

Passport and RNOKPP of the parties.
A document confirming ownership of the property being donated.
Extract from the State Register of Real Property Rights (for real estate).

Drawing up a contract– can be drawn up by a notary or prepared independently.

Notarial certificate– mandatory for the donation of real estate.

State registration– if the object of the donation is real estate, the ownership must be registered in the registry.

It will also be useful: REGISTRATION OF A DONATION (DONATION AGREEMENT)

Can a gift agreement be canceled?

Yes, a gift agreement is subject to cancellation, but only on certain grounds provided for by law. In Ukraine, this is regulated by the Civil Code of Ukraine (CCU), in particular Articles 727–730. Here are the main cases when a gift agreement can be canceled:

Ingratitude of the donee (Article 727 of the Civil Code)

The donor may demand the cancellation of the contract if the donee:

Committed an intentional criminal offense against the donor, his relatives or close people.
Caused bodily injury or other serious harm to the donor.

If the donee poses a threat to the donor’s life

For example, if his actions endanger the life or health of the donor.

If the donee uses the gift for purposes other than those intended (Article 728 of the Civil Code)

If the contract contains a condition regarding a specific use of the property (for example, the home must be maintained in good condition), but the donee:

Destroys or deteriorates the condition of the donated item.
Uses the thing in a manner that contradicts the contract.

Difficult financial situation of the donor (Article 730 of the Civil Code)

If, after making a donation, the donor finds himself in difficult financial or life circumstances, and the donated property could significantly help him.

If the contract contains a condition on its cancellation

A gift agreement may contain conditions under which it may be revoked (for example, if the donee does not take care of the donor).

How to cancel a contract?

To cancel a gift agreement, you must file a lawsuit with the court, providing evidence of the violation.

How to properly draw up a gift agreement?

Drawing up a donation agreement is a responsible legal process, in which the help of a lawyer will be useful to avoid risks.

The lawyer will explain the rights and obligations of the parties under the agreement, help draw up a donation agreement in accordance with the norms of the Civil Code of Ukraine and check the correctness of the wording.