5 common mistakes in deeds of gift for money – and how to avoid them

Facts checked October 2, 2026.

A deed of gift for money does not have to be complicated. The most common problems arise when the document fails to address the questions that actually matter later on: was the transfer a gift or a loan, should it be considered an advance on inheritance, and is there a clear provision regarding separate property?

1. It is not clearly stated that the money is a gift

Explicitly write that the amount is being transferred without any obligation for repayment and without any counter-performance. Otherwise, a future dispute could arise regarding whether the transfer was actually a loan.

2. Advance on inheritance is forgotten

As a general rule, a gift to a forced heir shall be deducted as an advance on inheritance unless otherwise prescribed or if circumstances indicate otherwise. If the donor wishes to deviate from the main rule, this should be clearly stated at the time the gift is made.

3. “Separate property” is used without understanding the effect

This provision is primarily relevant for a married recipient's future division of marital property. For cohabitants, other rules apply: money in itself is generally not cohabitation property. A deed of gift should therefore not promise broader protection than the law actually provides.

4. The money cannot be traced

Keep the deed of gift and payment documentation together. This is especially important if the money is later used to purchase other property or is mixed with other funds.

5. Adding formal requirements that do not exist

For a standard monetary gift, there is no general legal requirement for two witnesses. In some situations, witnesses can strengthen the evidence, but should not be described as a mandatory requirement for validity. The same applies to the requirement to write the amount in both numbers and words – it may increase clarity but is not a general statutory formal requirement.

Bonus: don't forget bank questions

A bank may want to understand the purpose of the transaction and the origin of the funds. A clear deed of gift helps, but the bank may still request supplementary documentation. There is no general monetary threshold that automatically makes a private gift taxable or subject to reporting.

Checklist before the transfer

• Are the donor and recipient correctly identified?
• Are the amount and currency clear?
• Is it stated that the money is given without any repayment obligation?
• Is the issue of advance on inheritance regulated?
• Is any separate property clause intended and correctly formulated?
• Are both the deed of gift and bank records being saved?

Learn more about advance on inheritance and deeds of gift for money.

Sources

• The Swedish Inheritance Code, Chapter 6
• Swedish Tax Agency – gifts and family law acquisitions