Understanding Gift Deed Revocation: Legal Options & Considerations

Like other deeds, a gift deed conveys property title from one individual to another. You can only use a gift deed when there's no money or other consideration involved: It transfers title from a donor to a donee without asking for anything in return. All you have to do to convey property this way is to meet the legal requirements imposed by your state. If you change your mind afterward, or someone challenges the title transfer, it will be difficult to reverse the gift unless you set up that option ahead of time.

Revocable Deeds

Step 1

Decide what sort of deed you wish to use. A reversionary deed includes clauses that allow you to revoke the transfer if certain terms are ignored. Revocable deeds allow you to take back the title transfer whenever you choose, as long as you keep the deed.

Step 2

Write a reversionary clause into the deed. This spells out terms the donee has to meet to retain title; for example, a gift of land to the city that states it must be used as a public park. If the clause is violated, that reverses the title transfer.

Step 3

Complete the deed according to state law. Standard requirements for a gift deed are that it includes a legal description of the property; the names of the donor and the donee; signatures from two witnesses; and a notary seal. Your state may require added conditions for a valid deed.

Step 4

Retain possession of the deed. If you want to reverse a revocable deed, you can do so at any time as long as you or your agent has the document. Once you give the deed to the donee, or it's recorded with the county deed register, you no longer have that option.

Irrevocable Deeds

Step 1

Go over the circumstances in which the donor made up the deed. Look for anything suspicious, such as a sign he wasn't in his right mind or that the donee might have pressured him unethically into signing over title.

Step 2

Research whether the deed meets the conditions of the law. In Nebraska, for example, state law says that a married individual cannot sell or give away the couple's primary home without her spouse's consent. A gift deed that isn't signed by both spouses might be invalid.

Step 3

File a lawsuit to reverse the gift deed. You can use the same grounds to invalidate it that you would use with any other deed: The deed might not meet state law for title transfers, or the donor might not have been in his right mind, for instance.