You Might Be Wondering…

• Does a money gift always require a written agreement?

• How does gift tax work if I transfer a larger amount to my child?

• What happens if the recipient spends the money and I want to revoke the gift?

• What mistakes do people make when they transfer money “just like that” via bank transfer?

Clients Often Ask Me…

• Is it safe to gift a large amount “just by transfer”?

• How can I prove it was a gift and not a loan?

• Can a gift agreement protect the money from debt enforcement?

• What if we fall out and I want the money back?

What Is a Money Gift in a Nutshell

In principle, giving money is simple – the donor transfers a certain amount free of charge to the donee, who accepts it. For small amounts in everyday life, no agreement is needed. But once the sum goes beyond the level of a “social courtesy,” it is advisable (and often necessary) to put everything in writing.

Biggest Risks and Common Mistakes

1. Unclear whether it was a gift or a loan – without an agreement, disputes are common.

2. Tax implications – gifts between close relatives are tax-free, but gifts between unrelated persons may be taxed.

3. Debt enforcement – if the recipient has debts, the money can be seized immediately.

4. Invalid agreement – large amounts without a written contract can be challenged.

5. Revocation of the gift – possible if the recipient shows ingratitude or if the donor falls into financial distress.

Step-by-Step Guide

1. Decide how much you want to gift and to whom.

2. Check whether taxes apply (with non-relatives they usually do).

3. Draft a written gift agreement for money – clearly state the amount, method of transfer, and date.

4. Transfer the money via bank, not in cash.

5. Keep proof of the transfer and a copy of the agreement.

Real-Life Examples

• A mother gave her son CZK 500,000 for an apartment. There was no agreement, so the tax office questioned whether the transfer qualified for tax exemption between direct relatives.

• A man gave his partner CZK 200,000. After the breakup, he wanted the money back, claiming it was a loan. The case ended up in court.

• A grandfather gifted a larger sum to his granddaughter. She was subject to debt enforcement, and the money was seized immediately.

Why DIY Is Risky

Many people think a gift agreement for money is unnecessary when the money is “just sent via bank transfer.” The opposite is true. Without a contract, it is difficult to prove the donor’s intent. At court, the recipient may claim it was a loan, or the tax office may refuse the exemption.

Lawyer’s Recommendation

• Always draft a written agreement if the amount exceeds CZK 50,000.

• Clearly specify the amount, date, and bank account number.

• Be careful with gifts to partners – after a breakup, return is uncertain.

• Don’t overlook tax implications – with unrelated persons, tax can amount to tens of thousands of crowns.

Checklist before gifting money:
☑ Do I know exactly to whom and how much I am giving?
☑ Is the agreement in writing?
☑ Are tax issues resolved?
☑ Was the transfer made via bank?
☑ Have I kept all documents?

FAQ

Does a gift agreement for money always have to be in writing?
No, not for small amounts. But for higher amounts it is recommended – as evidence.

Is there a gift tax on money?
Gifts between close relatives are exempt. Gifts between unrelated persons are taxed as income.

Can I revoke a gift?
Yes, if you fall into financial hardship or if the recipient acts with serious ingratitude.