What is a gift deed for real estate?

In real estate, a 'gift deed' is a notarized document that transfers ownership of property to another person. Gift deeds are only used when there is no payment or compensation for the property that is being transferred.

Gift deeds are most often used for transferring property between relatives and friends. The person who is gifting the property is known as the "donor," while the person receiving the property is deemed the "recipient." A gift deed becomes irrevocable once it has been given to the recipient and receivers of such property are required to claim the gift on their federal income tax form.