What does a notarized gift contract cost?

Introduction to the notarized gift contract

The introduction to the notarized gift contract provides an initial overview of the topic and serves as a foundation for understanding the subsequent content. A gift contract is a legal agreement between two parties, in which one party (the donor) voluntarily and without compensation transfers an asset to the other party (the recipient).

The gift contract can involve various types of assets, such as real estate, securities, or cash. According to § 518 BGB, notarization is required for gifts involving real estate and certain other assets. This notarization ensures legal security and protects both the donor and the recipient from potential disputes.

The main focus of this article is on the question "what does a notarized gift contract cost," which serves as the central keyword. The goal is to provide readers with comprehensive information about the costs involved in drafting a gift contract and the various factors that need to be considered.

The article will also address the document generator provided by Beglaubigt.de. This helpful tool allows contracts to be generated securely and quickly in PDF or WordX format. The document generator is an efficient solution for simplifying the contract drafting process while ensuring compliance with legal requirements.

The following sections will explore various aspects to consider when creating a notarized gift contract. This includes costs, the validity of the contract without a notary, who bears the costs in case of gifts, a comparison between gifting and transferring ownership, and potential disadvantages of a gift.

In this way, the reader should gain a comprehensive understanding of the topic and be able to make informed decisions regarding gift contracts.

What is the purpose of a notarized gift contract?

The significance and purpose of a notarized gift contract lie in the legally secure transfer of assets or property from one person (the donor) to another person (the recipient) without compensation. A notarized gift contract provides both the donor and the recipient with legal certainty and clarity regarding the terms and scope of the gift. The main functions of a notarized gift contract are:

1. Legal security: A notarized gift contract is certified by a notary, who verifies the identity of the parties, ensures compliance with legal requirements, and informs the parties of the legal consequences of the gift. The notarization by the notary provides legal security for the parties and minimizes the risk of future legal disputes.
2. Clear regulation of the gift: The notarized gift contract clearly and explicitly outlines the terms, scope, and legal consequences of the gift. This includes possible rights of reclamation, rights of use, or restrictions on the gift.
3. Compliance with legal formalities: In certain cases, such as the transfer of land or real estate, a notarized gift contract is legally required. The notarization ensures that all legal formalities are met and that the gift is valid.
4. Documentation: The notarized gift contract serves as an official document that records the transfer of assets or property. This is especially important for the re-registration of land registry or other property rights.
5. Tax aspects: A notarized gift contract can also help to correctly address the tax implications of the gift. The notary can inform and advise the parties on potential gift taxes, exemptions, and tax planning options — gift contract taxes.

In summary, a notarized gift contract serves to securely and clearly regulate a gift, ensure compliance with legal formalities, and clarify tax issues. It provides legal security to the involved parties and protects them from potential legal disputes.

When is a notarized gift contract advisable?

A notarized gift contract is advisable in various situations and can be beneficial for all parties involved. Here are some cases in which a notarized gift contract is recommended:

1. Legal requirements: For certain asset transfers, such as the gifting of land, apartments, or houses, a notarized gift contract is legally required. Without notarization, the gift is not legally valid in these cases.
2. Valuable assets: When transferring valuable assets, such as artworks, high-end vehicles, or company shares, a notarized gift contract is recommended to ensure legal certainty and clarity regarding the terms of the gift.
3. Reservation of revocation rights: If the donor wishes to retain certain rights, such as a revocation right in case of impoverishment, this should be documented in a notarized gift contract.
4. Conditions and stipulations: A notarized gift contract is useful if the donor wants to impose specific conditions or stipulations on the gift, such as caring for the donor in old age or fulfilling certain obligations by the recipient.
5. Transfer of assets during the donor's lifetime: In situations where assets are transferred while the donor is still alive, for instance, to arrange inheritance or to take advantage of tax benefits, a notarized gift contract helps address legal and tax issues appropriately.
6. Protection from legal disputes: A notarized gift contract can help avoid potential conflicts between the parties or with third parties by ensuring the gift is legally secure and clearly regulated.
7. Tax considerations: A notarized gift contract is advisable when tax matters, such as gift tax and exemptions, are relevant. The notary can inform and advise the contracting parties on these topics.

Overall, a notarized gift contract is advisable in various situations and provides the involved parties with legal certainty, clarity, and protection from potential legal disputes.

How much does a gift contract at the notary cost?

The costs for a gift contract at a notary vary and depend on several factors. In Germany, notary fees are regulated by the Court and Notary Costs Act (GNotKG). It stipulates that notary fees are based on the transaction value, which refers to the value of the item being notarized. For a gift, this would be the value of the gifted item.

Typically, the costs for a gift contract include fees for notarization, as well as for consultation and preparation. Additionally, if the gift involves real estate, fees for land registry entry may also apply.

As a rough estimate, notary fees for a gift contract with a transaction value of €100,000 could range between €1,000 and €2,000. However, this is only an approximation, and the actual costs may be higher or lower depending on the specific circumstances and any additional fees.

It is advisable to consult a notary directly for an accurate estimate, as they can provide a detailed cost assessment based on the specifics of the case.

What are the costs of a notarized gift contract?

The costs of a notarized gift contract vary depending on the scope and value of the gift, as well as the specific requirements of the contract. The main factors influencing the costs include legal fees, the transaction value of the gift, and possible additional costs. Here is an overview of the various cost factors:

1. Legal fees: In Germany, notary fees for services such as the notarization of a gift contract are regulated by the Court and Notary Costs Act (GNotKG). The fees are based on the transaction value of the gift and are generally tiered according to a set fee schedule.
2. Transaction value: The transaction value of the gift is the key figure used to calculate notary fees. It is usually determined based on the market value or actual value of the asset being transferred. The higher the transaction value, the higher the notary fees.
3. Additional costs: In addition to legal fees, other costs may arise depending on the specific requirements of the gift contract. These may include, for example:Fees for consulting and preparing the contractRegistration fees for entering property into the land registry, in the case of a real estate giftPotential taxes or administrative fees.

The exact costs of a notarized gift contract vary from case to case and depend on multiple factors. It's advisable to discuss the expected costs with the notary in advance to avoid any unpleasant surprises.

What does a notary require for a gift?

If you want to process a gift contract through a notary, the notary will need various pieces of information and documents. The exact requirements can vary depending on the situation, but here are some typical items that the notary usually needs:

1. Personal details of the parties involved: The notary will require the full names and addresses of the parties. In some cases, additional personal information such as birth dates or places of birth may be needed.
2. Details about the gift: The notary needs to know exactly what is being gifted. For example, if it's a property, the notary will require the exact location, size of the plot, and information about any buildings. In the case of a monetary gift, the specific amount is important.
3. Documents: The notary often needs specific documents. For a real estate gift, this could include a recent land registry excerpt. For a monetary gift, the notary may require documentation verifying the source of the funds.
4. Information about any reservations: Sometimes, the donor reserves certain rights, such as the right to live in a property being gifted. The notary needs to be informed about such reservations so they can be incorporated into the contract.

Examples of Transaction Values and Corresponding Fees – Sample Calculation

The fees for a notarized gift contract are based on the transaction value of the gift, usually determined by the market value or actual value of the asset being transferred. In Germany, the fees for notary services are regulated by the Court and Notary Costs Act (GNotKG). Below are some examples of transaction values and the corresponding fees according to the GNotKG:

1. Transaction value: €50,000

• Notarization fee (§ 36 Sec. 2 GNotKG, fee rate 1.0): €372
• Execution of the gift (§ 39 GNotKG, fee rate 1.0): €372
• Total cost: €744

2.Transaction value: €100,000

• Notarization fee (§ 36 Sec. 2 GNotKG, fee rate 1.0): €619
• Execution of the gift (§ 39 GNotKG, fee rate 1.0): €619
• Total cost: €1,238

3. Transaction value: €200,000

• Notarization fee (§ 36 Sec. 2 GNotKG, fee rate 1.0): €1,043
• Execution of the gift (§ 39 GNotKG, fee rate 1.0): €1,043
• Total cost: €2,086

Please note that these examples are intended as rough guidelines, and the actual fees may vary depending on specific circumstances. Additional costs, such as consultation fees, property transfer costs, and land registry fees, are not included in these examples.

What additional costs could arise from a notarized gift contract?

In addition to the statutory fees for notarization and execution, a notarized gift contract may incur further costs depending on the specific requirements and circumstances of the contract. Here are some potential additional costs:

1. Consultation fees: If the notary provides comprehensive advice to the parties on legal and tax aspects or assists in drafting the contract, additional consultation fees may be charged.
2. Property and real estate transfer costs: For the gifting of land or real estate, additional costs for the transfer in the land registry may apply. These costs vary depending on the value of the property and local fee schedules.
3. Fees for land registry entry: When real estate is gifted, it must be registered in the land registry, which incurs additional fees. These land registry fees vary by federal state and the value of the property.
4. Fees for certifications and witnesses: In some cases, it may be necessary to obtain certified documents or have witnesses' signatures, which can incur further costs.
5. Valuation costs: If it is necessary to have the value of the gifted asset assessed by an expert, this will generate valuation costs.
6. Tax costs: Depending on the size of the gift and the personal tax exemptions of the parties involved, gift taxes may apply.
7. Costs for transferring shares or business interests: When gifting shares or business interests, there may be additional fees for the transfer or registration in the commercial register.

What does a real estate gift cost at the notary?

The cost of a real estate gift at a notary in Germany is regulated by the Court and Notary Costs Act (GNotKG) and depends on the value of the property being gifted.

For example, for a property valued at €200,000, the notary fees could range from approximately €1,500 to €2,000. However, this is only a rough estimate, and actual costs may vary depending on the specific circumstances and any additional services provided by the notary, such as changes to the contract or obtaining a land registry excerpt.

In addition to the notary fees, there are also land registry costs. Registering the gift in the land registry typically costs a percentage of the property's value, often around 0.5% of the property value.

What are the costs for registering in the land registry?

The costs for registering a property in the land registry vary by federal state and the type of registration. In Germany, these land registry fees are also regulated by the GNotKG. The fees include the cost of the actual registration as well as any potential costs for removing or adding rights in the registry, such as mortgages.

Here are some examples of land registry fees:

1. Land registry correction: The fee for correcting the land registry, such as for a property gift, usually ranges between 0.5 and 1.0 fee rates according to the GNotKG table, depending on the value of the property.
2. Removal of rights: If rights, such as mortgages or easements (e.g., rights of way), need to be removed in connection with the gift, additional fees for their removal apply. These also typically range between 0.5 and 1.0 fee rates based on the property's value.
3. Registration of mortgages or land charges: If new mortgages or land charges are to be registered in connection with the gift, additional fees apply. These also usually range from 0.5 to 1.0 fee rates based on the GNotKG table.

How much does a gift deed cost?

The cost of a gift deed created by a notary primarily depends on the value of the gift. In Germany, notary fees are regulated by the Court and Notary Costs Act (GNotKG).

Example:

For a gift valued at €100,000, the cost of drafting the gift deed could range between €1,000 and €2,000.

These costs generally include fees for consultation, preparation, and notarization

It should be noted that additional costs may arise depending on the specific circumstances. For example, in the case of a real estate gift, there could be additional costs for registration in the land register.

This information is only a rough estimate, and the actual costs may vary depending on the individual case. Therefore, it is advisable to consult a notary directly for the exact costs.

How are notary fees calculated for a gift?

Notary fees in Germany are based on the transaction value of the gift, meaning the value of the item being transferred. The transaction value is used to calculate the fees according to the fee schedule set by the GNotKG.

The fees for the notary are calculated based on a fee schedule outlined in the law. Generally, the higher the transaction value, the higher the fees. However, the fees do not increase linearly with the transaction value but follow a tiered system as defined in the fee schedule.

In addition to notarization fees, other costs may arise. For instance, the notary may charge additional fees for consultation and preparation of the deed. For a real estate gift, there could also be costs for registering the property in the land registry.

Therefore, the exact costs can vary from case to case, and it is recommended to consult with a notary for a precise cost estimate.

Which is cheaper: gifting or transferring?

Whether gifting or transferring is cheaper depends on various factors and cannot be answered definitively. Here are some points to consider:

1. Notary and land registry fees:
   Both gifting and transferring incur notary and land registry fees. These costs are calculated in Germany according to the Court and Notary Costs Act (GNotKG) and depend on the value of the transferred property.
2. Real estate transfer tax:
   In the case of a gift, real estate transfer tax may be waived under certain conditions, such as gifts between close family members. For a transfer through a purchase agreement, real estate transfer tax generally applies, with rates varying between 3.5% and 6.5% of the purchase price, depending on the federal state.
3. Gift tax:
   Gift tax may apply for a gift. Whether and how much depends on the relationship between the parties and the value of the gift. There are specific tax exemptions, which vary by relationship (e.g., €400,000 for children).
4. Long-term costs and inheritance issues:
   If you gift a property, you should consider that you give up any future income from that property. Additionally, gifting may affect inheritance tax if the donor dies within 10 years of the gift.
   

What does a gift to children cost?

The costs of gifting to children depend on several factors:

1. Value of the gift: In Germany, notary fees are regulated by the Court and Notary Costs Act (GNotKG) and are based on the value of the gift. For example, if you gift a property worth €200,000, notary fees could range from around €1,500 to €2,000.
2. Type of gift: The costs can also vary depending on what is being gifted. For instance, if you are gifting real estate, there may be additional fees for registering the property in the land registry.
3. Gift tax: For gifts to children, there is a tax-free allowance of €400,000 per child every ten years. If the value of the gift exceeds this amount, gift tax will be applied. The exact amount of tax depends on how much the gift exceeds the exemption.

Please note that these figures are rough estimates, and actual costs can vary depending on the specifics of each case.

Can costs be saved on a notarized gift contract?

The costs for a notarized gift contract in Germany are legally regulated and based on the value of the gift. This means that you cannot directly reduce these costs, as they are calculated according to a fixed fee schedule.

However, there are some points to consider that may help minimize the overall costs of a gift:

1. Preparation: Proper preparation can help avoid additional costs. For example, having all the necessary information and documents ready can ensure the process runs smoothly, preventing extra fees for amendments or additional meetings with the notary.
2. Clear agreements: By clearly defining the terms of the gift in advance, you can avoid potential disputes and associated costs.
3. Tax considerations: Regarding taxes, there are certain exemptions that can be used to minimize gift and inheritance taxes. A tax advisor can guide you on how best to take advantage of these exemptions.
4. Gift in installments: Another way to minimize the tax burden might be to split the gift into several parts over a longer period, allowing you to potentially use the tax-free allowance multiple times.

Validity of a gift contract without a notary

The validity of a gift contract without a notary depends on several factors, particularly the type of asset being transferred and the legal requirements. This section explains when a gift contract without a notary is valid and what exceptions exist to notarization requirements.

A. Legal requirements for a gift contract:

In Germany, the Civil Code (BGB) stipulates certain requirements for the validity of a gift contract. According to § 516 BGB, a gift is a contract through which one party transfers an asset to another party without compensation.

1. Notarization: For certain gift contracts, notarization is required for legal validity. According to § 518 paragraph 1 BGB, a gift contract that involves the obligation to transfer a property or a property-like right must be notarized. This means that such a gift contract is not valid without a notary.
2. Movable goods: For gifts involving movable goods, such as vehicles, furniture, or electronic devices, notarization is not required. In these cases, handing over the item to the recipient is sufficient to make the gift legally effective.

B. Exceptions to Notarial Certification:

In certain cases, a gift contract can be valid without notarial certification, provided legal requirements are met. When is a gift contract necessary? Here are some examples of such exceptions:

1. Manual gift (Handschenkung): In a manual gift (§ 523 BGB), the asset is transferred directly from one party to the other without the need for notarial certification. This is only possible for movable property or certain rights, but not for real estate.
2. Gift promise (Schenkungsversprechen): A gift promise (§ 516(2) BGB) is a unilateral legal promise where the donor commits to giving an asset without compensation. A gift promise generally requires notarial certification, unless it is a minor gift or a gift that is fulfilled immediately.

It is advisable to seek legal advice when drafting a gift contract to ensure all requirements are met. The document creator from Beglaubigt.de can assist in quickly and efficiently drafting legally sound contracts.

Cost Allocation in Gift Contracts

The question of who bears the costs in gift contracts is often a matter of negotiation between the donor and the recipient. There is no legal regulation mandating who must bear the costs of a gift. However, certain practices have become common. Below are some possible scenarios and recommendations regarding cost allocation in gift contracts.

A. Notary Fees:

Since the notarization of a gift contract is often legally required, notary fees will apply. These fees depend on the value of the asset and the federal state where the notary operates. Typically, the donor pays the notary fees, but other arrangements can be made between the parties.

B. Real Estate Transfer Tax:

When gifting real estate, no real estate transfer tax is usually incurred if the recipient is a direct relative of the donor (e.g., parents, children, grandchildren) or the spouse or registered partner. In other cases, real estate transfer tax may apply, with rates varying by federal state. The recipient is typically responsible for paying the real estate transfer tax.

C. Gift Tax:

Gift tax applies to tax-free transfers of assets and is calculated based on the value of the asset, the degree of kinship, and the applicable tax class. In most cases, the recipient is responsible for paying the gift tax. However, the donor and recipient may agree on a different arrangement.

D. Legal and Advisory Fees:

Both the donor and the recipient may seek legal advice on the implications of the gift and to draft the gift contract. The legal fees are usually paid by the party receiving the advice or service.

It's recommended that the donor and recipient make clear agreements about cost allocation before the gift to avoid misunderstandings or disputes. The document creator from Beglaubigt.de can assist in drafting legally sound gift contracts and simplifying the process of contract creation.

Differences between Gifting and Transferring

Gifting and transferring are two terms used in the context of asset transfer. While they are often used interchangeably, they have different legal implications. This section explains the differences between gifting and transferring, as well as the advantages and disadvantages of each method.

A. Gifting:

A gift is the free transfer of assets from one person (the donor) to another (the recipient). The gift is given voluntarily without any compensation. Gifts can include various assets such as real estate, vehicles, securities, or cash.

1.Advantages of gifting:

• Tax exemptions: Depending on the degree of kinship and tax class, significant tax-free allowances can be used for gifts.
• Prevention of inheritance disputes: By gifting assets during their lifetime, the donor can distribute their wealth among heirs, potentially avoiding future inheritance disputes.
• Asset transfer during lifetime: Gifting allows the free transfer of assets during the donor's lifetime, which may be beneficial in certain circumstances.

2.Disadvantages of gifting:

• Gift tax: Gifts may be subject to gift tax, which varies depending on the value of the asset and the relationship between the donor and recipient.
• Right of reclamation: In some cases, the donor can reclaim the gift, for example, if they experience financial difficulties (§ 528 BGB).

B. Transferring:

Transferring is a broader term for the transfer of assets, regardless of whether it is done through a gift, sale, or other forms of asset transfer. For example, in the case of real estate, the transfer of ownership is formalized through registration in the land registry.

1.Advantages of transferring:

1. Flexibility: Transfers offer flexibility in the form of asset transfer, as they can be either gratuitous (gift) or compensated (sale).
2. Contractual protection: In a transfer, the donor can set contractual terms or conditions to protect their interests..

2. Disadvantages of transferring:

• Costs: Transfers, especially compensated ones, can incur costs such as notary fees, real estate transfer tax, or broker fees.
• Tax considerations: Compensated transfers typically do not benefit from tax-free allowances, unlike gifts, which may have significant tax exemptions depending on the circumstances.

What are the disadvantages of gifting?

While gifting can be a sensible option for transferring assets in certain situations, there are also disadvantages that should be considered. Here are some potential drawbacks of gifting:

1. Gift Tax:
   Gifting can trigger gift tax, which varies depending on the value of the asset, the degree of kinship, and the tax class. Although there are personal tax-free allowances that can be used every ten years, significant tax burdens can still arise for high-value assets.
2. Loss of Control:
   By gifting assets, the donor loses control over the transferred property. This can be problematic if the recipient mismanages the assets or faces financial difficulties that could negatively impact the donor.
3. Right of Reclamation:
   In certain situations, the donor has the right to reclaim the gift, such as if they experience financial hardship (§ 528 BGB) or if the recipient breaches their contractual obligations. However, enforcing these rights can often be difficult and may involve legal disputes.
4. Social Welfare Regress:
   In cases where the donor requires social assistance within ten years after the gift, the social welfare agency may seek compensation from the recipient. This means the transferred assets may need to be used to cover the donor's social care costs.
5. Supplementary Compulsory Portion:
   If the donor passes away within ten years of the gift, those entitled to a compulsory share of the estate may have a claim on part of the gifted assets to ensure they receive their legal inheritance share.
6. Problems with Real Estate Gifts:
   Gifting real estate can lead to issues if the recipient does not use the property themselves but rents or sells it. In such cases, tax disadvantages like capital gains tax (speculation tax) could arise.

To minimize potential disadvantages and risks associated with gifting, it is advisable to seek legal advice beforehand and carefully draft the gift contract. Beglaubigt.de offers assistance by providing tools to create legally secure contracts in PDF or Word format.

Summary and Conclusion

In summary, a notarized gift contract has both advantages and disadvantages. Therefore, when deciding if gifting is the right option for asset transfer, all aspects should be carefully considered.

A gift contract allows assets to be transferred free of charge during the donor’s lifetime. Tax exemptions can be used, and potential inheritance disputes may be avoided. The costs of a gift contract depend on the value of the asset and include notary fees, taxes, and legal advice.

Without notarization, the validity of a gift contract is limited, particularly in cases involving real estate, where notarization is legally required. Cost allocation in gift transactions is subject to negotiation between the donor and the recipient, though certain practices are commonly observed.

Gifting and transferring differ in their legal implications. While gifts involve the free transfer of assets, transfers can be either free or compensated. Both methods have their pros and cons, which should be taken into account when deciding on an asset transfer strategy.

Some disadvantages of gifting include gift tax, the loss of control over the asset, reclamation rights, social welfare regress, supplementary compulsory share claims, and potential tax disadvantages when gifting real estate.

Overall, it is advisable to seek comprehensive legal advice before making a gift or transfer to minimize potential drawbacks and risks. Beglaubigt.de can assist by helping to create legally secure contracts and simplifying the contract drafting process.

What documents do I need for a gift at the notary?

For a notarized gift, you will generally need the following documents and information:

1. ID or passport: To verify the identity of the involved parties, the notary will need valid identification documents.
2. Details about the gift: The notary needs exact information about what is being gifted. For example, in a real estate gift, you would need to provide the exact location and size of the property, details about any buildings, etc. For a monetary gift, the exact amount must be specified.
3. Current land registry excerpt: For real estate gifts, the notary will require a recent land registry excerpt. This can be obtained from the land registry office.
4. Possible reservations: Sometimes the donor reserves certain rights, such as right of residence in the case of a real estate gift. The notary must be informed of these reservations so they can be included in the contract.
5. Proof of ownership: When gifting real estate, you must be able to prove that you are the rightful owner. This is usually done through the land registry excerpt.
6. Other relevant documents: Depending on the type of gift and individual circumstances, additional documents may be required.

Thanks to advances in digitalization and services like Beglaubigt.de, many steps in the process can now be done online. On this platform, you can submit the necessary documents and create the gift deed. Physical presence at a notary's office is often no longer required, which not only saves time but can also lead to significant cost savings, as you avoid travel expenses and the process can be completed more quickly.