Gift deed for money – monetary gift, advancement of inheritance, and separate property
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Facts checked: October 1, 2026 · The Gift Act, the Inheritance Code, and the Income Tax Act
A monetary gift does not normally require a deed of gift for an already completed transfer to be considered a gift. However, a deed of gift is very valuable for proving that the money is not a loan and for regulating matters such as advancement of inheritance and separate property.
When is a monetary gift completed?
The Act (1936:83) on Certain Promises of a Gift distinguishes between a promise and a completed gift. For money and chattels, Section 2 states that the gift is completed when that which has been promised comes into the possession of the recipient. For bank funds, there are special rules regarding completion in the Gift Act.
This means that a deed of gift should not be described as if the paper document itself is always what makes an ordinary monetary gift valid. The document primarily serves as proof and sets out conditions.
Gift or loan?
In the case of larger transfers between relatives, disputes sometimes arise later as to whether the money was a gift or a loan. If repayment was intended, you should not use a deed of gift – a promissory note or loan agreement is usually more appropriate in such cases.
A deed of gift for money should clearly state that the amount is given without any obligation to repay. Write the amount in both figures and preferably words, the date of the transfer, and any reference to the bank transaction.
Gift to children – is the money an advancement of inheritance?
Yes, as a general rule. According to Chapter 6, Section 1 of the Inheritance Code, a gift to a descendant shall be deducted as an advancement of inheritance unless otherwise prescribed or presumed to have been intended.
If the gift should not count as an advancement of inheritance, this should therefore be stated explicitly. If it is intended as an advancement, it is also wise to write this down, especially if there are several children.
How is the advancement of inheritance valued?
The main rule of the Inheritance Code is that the deduction is based on the value of the property at the time of receipt, unless circumstances suggest otherwise. For a pure monetary gift, the amount is therefore normally a clear starting point.
Can the money be made into separate property?
Yes. If the donor is someone other than the recipient's spouse, the donor can stipulate that the gift shall be the recipient's separate property. This can be significant in a future division of marital assets.
Also consider what should apply to returns. Returns from separate property are as a general rule marital property unless otherwise prescribed. For money and investments, it may therefore be relevant to specify whether interest, dividends, or other returns should also be separate property.
Gifts between spouses
Spouses may give each other money. A gift between spouses can become valid between them through completion according to the standard rules or through registration. For the gift to be valid against the donor's creditors as a general rule, registration with the Swedish Tax Agency (Skatteverket) is required.
Is a monetary gift tax-free?
A genuine gift without a requirement for a counter-performance is tax-free for the recipient under the Income Tax Act. There is therefore no income tax simply because a private individual receives a genuine monetary gift.
However, the label "gift" does not settle the matter. If the payment is connected to work, an assignment, or other counter-performance, it may be taxable. Gifts from employers are also subject to special benefit rules.
Must the monetary gift be reported to the Swedish Tax Agency?
A standard completed monetary gift between private individuals does not need to be sent to the Swedish Tax Agency just because it is a gift. Gifts between spouses are a special area where registration may be needed for creditor protection.
Are witnesses required?
There is no general requirement for witnesses for deeds of gift for money. Witnesses may have evidentiary value in certain situations, but they are not what, according to the main rule, completes a monetary gift.
Can the donor decide how the money may be used?
It is possible to write conditions, but their legal effect depends on the content. A simple request that the money be used for, for example, a home is not necessarily the same as a binding reversionary clause. If the donor wants to retain extensive control over the money, the structure should be legally assessed before the transfer is made.
Example: down payment to an adult child
A parent gives their adult child SEK 300,000 for a down payment. Unless otherwise stated, the gift is by default an advancement of inheritance. If the parent does not want the gift to be deducted, this should be written in the deed of gift. If the parent also wants the money and whatever replaces it to be the child's separate property, this should also be clearly formulated.
Checklist for a deed of gift for money
- The donor's and recipient's complete details.
- Exact amount and currency.
- Clear wording that the amount is a gift without any obligation to repay.
- Date of the gift and preferably a link to the bank transfer.
- Advancement of inheritance: yes or no.
- Separate property: yes or no.
- What should apply to returns?
- Any other legally considered conditions.
- Signatures.
See also Deed of Gift FAQ and Deed of Gift and Swedish Law.
Mallbutiken's Deed of Gift Money – Template costs SEK 29 and can be used to document the amount, intent of the gift, and conditions.
