Document background
A Gift Agreement Between Individuals is essential when documenting significant property or asset transfers between individuals in Canada. This document is particularly important when the gift's value is substantial, involves real property, or has potential tax implications. The agreement should be used to prevent future disputes, provide clear evidence of the donor's intention, and establish compliance with both federal tax laws and provincial property transfer regulations. It typically includes detailed descriptions of the gifted property, any conditions attached to the gift, and acknowledgments from both parties. The document is especially crucial in situations where tax authorities might scrutinize the transaction or where family members might later question the transfer. In Quebec, additional formal requirements may apply due to the civil law system.
