What Is a Gift Letter? A gift letter is a piece of legal, written correspondence explicitly stating that money received from a friend or relative is a gift. The most common use of gift letters is when ...

Matt Webber is an experienced personal finance writer, researcher, and editor. He has published widely on personal finance, marketing, and the impact of technology on contemporary arts and culture.

Q. A relative needed help with the down payment on a home, so I gave him $25,000. I signed a gift letter to the lender. Shortly after the home closed, a different relative paid me back the $25,000.