Money Gift Agreement

Money gift agreement – a professional template in Word format

A money gift agreement is most often concluded between parents and children – for example when parents give an amount towards the deposit for a flat or as help with a larger investment in life. A written contract proves that the money is a gift and not a loan, specifies the purpose of the funds and protects both sides – the donor, the donee and their families in later property questions.

Gifts are governed by the Obligations Act (Zakon o obveznim odnosima) – a gift is given without consideration and is in principle irrevocable, subject to the exceptions laid down by law such as gross ingratitude of the donee. Where the gifted funds enter the property of spouses, the Family Act (Obiteljski zakon) also matters, because a precise wording of the purpose can determine whether the gift stays outside matrimonial property.

Key features

• Professional template – 8 articles drawn up in line with the provisions of the Obligations Act (Zakon o obveznim odnosima) on gift agreements.
• Practical reliability – covers the purpose of the gift, irrevocability, a tax note and warranties on the lawful origin of the funds.
• Easy customisation – fields for the donors, the donee, the amount, the IBAN and the purpose are filled in directly in Word, with a variant for one or two donors.
• Digital delivery – the DOCX file with instructions arrives by e-mail immediately after purchase, ready for printing and signing.

What the money gift agreement includes

• Details of the donor and the donee with the OIB (personal identification number) and an indication of the family relationship (for example parent and child)
• The amount of the gift in words and figures and payment by bank transfer to the donee’s IBAN
• A clause on the purpose of the gift – for example a contribution to the purchase price of a flat or a deposit for a loan
• Express acceptance of the gift by the donee
• A clause on irrevocability and on the statutory exceptions allowing revocation of a gift
• A tax note on the duty to check the position with the competent Porezna uprava (Croatian Tax Administration)
• Warranties by the donor on the lawful origin of the funds and the absence of enforcement or dispute
• Guidance on the form of the contract – when payment is immediate and when a notary public is required

Advantages of using this template

1. Proof that the money is a gift – a written contract prevents later disputes about whether the money was a gift or a loan that has to be repaid.
2. Protection in matrimonial property – a clearly stated purpose helps prove the donee’s own contribution outside matrimonial property.
3. Ready for the bank – with a loan, banks often ask for proof of the origin of the deposit, and the contract together with the bank statement documents it properly.
4. Tax order – the contract and proof of payment are the basis for reporting the gift to the Porezna uprava (Croatian Tax Administration) where that is required.
5. Instructions for completion – including advice on gifts from both parents, larger amounts and spending the funds for a set purpose.

When is a notary public required

The key rule with a gift of money is the moment of payment. If the money is paid out at the same time as the contract is signed, or immediately afterwards, an ordinary written contract such as this template is enough, together with a bank statement as proof. If the donor only undertakes to pay in the future, this is a gift without actual handover, for which the law requires a stricter form.

Important: a gift without simultaneous payment – a promise of a future gift – must be concluded in the form of a notarial deed or a solemnized document, otherwise it has no legal effect. The safest approach is to make the payment on the same day the contract is signed.

Who is this template intended for

• Parents who give their child money to buy a flat, as a deposit for a housing loan or to furnish a home.
• Family members who give larger amounts and want a clear written record for the bank and the tax authority.
• Spouses and cohabiting partners for whom it is important to separate gifted funds from matrimonial property.
• Donors of larger amounts who want to confirm in the contract the lawful origin of the funds and the purpose of the gift.

Are you giving real estate instead of money? For a flat, a house or land use our Real Estate Gift Agreement.