Sample Money Gift Letter from Parents: Free & Customizable

In this article, I’ll share my insights and a step-by-step guide to writing a thoughtful money gift letter, complete with a customizable template and personal tips from my experiences.

Key Takeaways:

  • Purpose: Understand the significance of a money gift letter and how it adds a personal touch to your financial gift.
  • Structure: Learn the essential components of a money gift letter, including the greeting, body, closing, and signatures.
  • Compliance: Ensure your letter meets any legal or financial requirements to prevent misunderstandings or issues.
  • Template: Access a customizable template to streamline your writing process.
  • Personalization: Get tips on adding a personal touch to your letter, making it memorable and impactful.
  • Legal Considerations: Know the potential tax implications and legal considerations of gifting money.

Step-by-Step Guide to Writing a Money Gift Letter

Step 1: Start with a Personal Greeting





Begin your letter with a warm, personal greeting. Address the recipient by their name to create a connection from the outset.

Example: “Dear [Recipient’s Name],”

Step 2: State the Purpose of the Gift

Clearly articulate the purpose of the gift. This helps in providing clarity and setting the tone for the letter.

Example: “We are thrilled to support your journey in purchasing your first home.”

Step 3: Specify the Gift Amount


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Mention the exact amount of money you are gifting. This is crucial for transparency and record-keeping.

Example: “We are gifting you the sum of $10,000 to assist with your home purchase.”

Step 4: Clarify the Nature of the Gift

It’s important to state that the money is a gift, not a loan, to avoid any potential legal or tax misunderstandings.

Example: “This amount is a gift, not a loan, and we do not expect any repayment.”

Step 5: Include Any Conditions or Expectations

If there are specific conditions or expectations associated with the gift, state them clearly.

Example: “The gift is intended solely for the down payment on your new home.”

Step 6: Add a Personal Message

Share your emotions or reasons for giving the gift, adding a personal touch to the letter.

Example: “We are so proud of your achievements and want to support you in this significant milestone.”

Step 7: Close with Warm Wishes

End the letter on a positive note, expressing your good wishes for the recipient’s future.

Example: “We wish you all the best as you embark on this exciting new chapter.”

Step 8: Sign the Letter

Include your signature(s) at the end of the letter to authenticate it.

Example: “With love, Mom and Dad”

Money Gift Letter Template

[Your Name]
[Your Address]
[City, State, Zip]
[Date]

[Recipient’s Name]
[Recipient’s Address]
[City, State, Zip]

Dear [Recipient’s Name],

We are delighted to provide you with a gift of $[Amount] to assist with [Purpose of the Gift]. This gift is a token of our love and support for you as you [mention the occasion or reason for the gift].

Please note that this amount is a gift and not a loan. We do not expect any form of repayment. [Mention any specific conditions or expectations, if any].

[Include a personal message, sharing your feelings or reasons for the gift].

We wish you the best of luck in your [mention the purpose or occasion] and are excited to see you thrive and succeed.

With all our love,
[Your Signature]
[Your Name]

Personal Tips from Experience

  • Keep It Clear: Ensure that the letter is straightforward and unambiguous, especially regarding the nature of the gift.
  • Maintain a Warm Tone: While it’s important to be clear, also keep the tone warm and personal.
  • Document Thoroughly: Keep a copy of the letter for your records and encourage the recipient to do the same, especially for substantial gifts.
  • Understand Tax Implications: Be aware of any tax implications and ensure your gift complies with IRS guidelines or relevant local tax laws.

Frequently Asked Questions (FAQs)

Q: How do I write a money gift letter from my parents for a mortgage application? 

Answer: When I wrote my money gift letter for my mortgage application, I made sure it included the amount gifted, the relationship to the donor, and a statement that the funds were a gift, not a loan. It was crucial to get it notarized to ensure its authenticity for the lender.

Q: What information should be included in a gift letter when receiving money from parents?

Answer: In my experience, the gift letter needed to clearly state the donor’s name, relationship, the gift amount, and the purpose of the gift. I also had to include a declaration that no repayment was expected, which was key for the bank’s approval.

Q: How did you feel when your parents offered you a financial gift, and how did you document it?

Answer: When my parents offered me a financial gift, I felt incredibly grateful and relieved. To document it, we drafted a formal letter detailing the gift amount and purpose, and they signed it in the presence of a witness to formalize the process.

Q: Can a money gift letter from my parents affect my tax liabilities?

Answer: When I received a monetary gift from my parents, I learned that it generally doesn’t affect my taxes, but for them, there might be implications if the gift exceeds the annual exclusion limit. We consulted a tax advisor to ensure everything was in order.

Q: How do I ensure that a money gift letter from my parents is legally binding?

Answer: To ensure the money gift letter was legally binding, I made sure it included all necessary details and signatures, and then we had it notarized. It was important to have a clear, written agreement to avoid any future misunderstandings.

Q: What was your biggest concern when drafting a money gift letter from your parents?

Answer: My biggest concern was ensuring that the letter clearly stated that the money was a gift and not a loan, as this distinction was crucial for my mortgage application. I also wanted to make sure it met all legal requirements to avoid any potential issues

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