Gifting Shares by way of Deed of Gift

A Deed of Gift is a formal legal document used to give a gift of property, money or shares/securities to another person. It transfers the money or ownership of shares/securities to another person without payment in return.

The person who creates and executes a Deed of Gift to transfer money, property or shares from himself to another person is called a Donor and the person receiving the gift is called the Donee.

Generally, most Deed of Gift transfers are carried out between family members as property transferred in this way is usually given out of the love and affection the giver has for the recipient.

Transferring shares, property or money by way of gift must be executed as a Deed because no consideration is given in return for the gift, thus the document has to be witnessed. Please note: the witnesses have to be disinterested parties. In other words they cannot have a stake in the transfer of the property. If a witness stands to benefit or take a loss because of the transfer of the property, then cannot be considered disinterested and cannot act as a witness.

A Deed of Gift – Shares template shall be used where the Donor wants to give shares or other securities in a company by way of gift to someone else.

This is an unconditional gift; the Donor gives the shares/securities absolutely and retains no right or interest in the gifted shares.

N.B. When gifting shares please make sure to check the Articles of Association of the relevant company in order to see if the company’s consent is required before the transfer of shares can be carried out. If the Articles of Association state that the negotiability of the shares is restricted by the prior written approval of the company then the Donor must obtain the approval of the company before the gift can be made.

Giving a gift to someone can have some Inheritance Tax implications. Generally, any gifts made to any individuals will be exempt from Inheritance Tax payments if the Donor lives for a total of seven years or more after having made the gift. These kinds of gifts are usually known as Potentially Exempt Transfers (PETs).

However, please note that if the Donor gives away an asset but keeps an interest in it then the gift will not fall within the category of a potentially exempt transfer.

If the Donor dies within seven years of making a gift and the gift is valued at more than the Inheritance Tax threshold, Inheritance Tax will need to be paid on the value of the gift usually by the Donee or by the representatives of the estate.

Our templates are in Microsoft Word format, written in plain English easy to use and edit.

 

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Football Authorities Threatened With Changes to The Law

Football authorities were given 12 months to make some changes in the way the game runs, otherwise they will face changes to the law.

It was proved after a report that football authorities took almost no action to implement the changes that the Culture, Media and Sport Select Committee recommended in July 2011.

Even the sports minister described football in the UK as “the worst governed sport in this country”.

The idea of this report is to propose ways which will help English clubs become more responsible with their finance and also give fans more opportunities to give their opinions on the running of the clubs.

It turned out that the three main football authorities- the Football Association, Premier League and Football League- disappointed the committee.

The expected reforms had to do much about the balance between the FA and the Premier League because Premier League is now the dominant one.

Due to this report if authorities did not make the steps needed the legislation would be introduced to enforce Financial Fair Play rules. These are made in a way that they limit the amount that clubs can spend in comparison to the amount that they earn.

The three football authorities made a statement saying they had done just enough:

“Significant headway has already been made on many of these proposed reforms, not least on sustainability and transparency….the remaining reform proposals are the subject of consultation within the game and we are confident that the necessary progress will be made.”

Despite this statement Hugh Robertson said they could do more:

“We have been clear that we want the football authorities to carry out the reforms they promised by the start of the 2013-14 season – most notably around improved governance and diverse representation at the FA, the development of a licensing system and greater financial transparency”.

When talking about law, we should mention The Legal Stop – the stop for all your legal needs. This includes legal documents, such as Monetary Deed of Gift Template for example.