The form exists in order to legally make a donation of a vehicle from one party to another. That is, through the document completion, the filer conducts a legal transfer of ownership rights. The parties can be both individuals and legal entities. It technically means that an individual or organization can transfer ownership rights, and an individual or organization can receive the object to possess and dispose of.
First of all, the key term “donation” means that the donor does not receive any amount of money from the person in whose favor they give the property. Therefore, the paper does not include a line to point out a payment amount for the transferred object. At the same time, the form indicates the value of the object, as well as the status of the relationship between the donor and the donee. Our review explains why you need to specify this data and how to fill the document out.
You need to fill out the act of donation if you transfer the rights to the car to another person or organization for free; in other words, gift your car. Only adult citizens can make an act of donation and accept the rights to the vehicle. You should be warned that the act is not appropriate for transactions involving the purchase and sale of movable property.
Although the ownership rights in the act of donation are transferred in exactly the same way, this form does not involve paying for the object. Unlike a sales contract, the donation is not subject to taxation. Therefore, the state services strive to clarify whether this specific act of donation is a hidden sale.
Clarifying the relationship between the parties to the act of donation allows the authorities to define whether the transfer of rights is actually made free of charge. For example, if the donor and the donee are close relatives or the donor is a charitable organization, the donation will not cause doubts for the responsible clerk.
Thus, the document aims to confirm the relationship between the parties so that the legal method of donation is not used to avoid tax liability for the vehicle sale. All parties to the donation, such as the donor, donee, and witnesses, come to the notary public’s office and put their signatures as a sign of consent and alignment.
The act of donation of movable property accompanies the transfer of ownership and confirms the donation’s authenticity. After the alienation of the property right, the current owner ceases to possess the object in full, and the right to own and dispose of the vehicle passes to the new individual or organization. Please note that you are transferring the property with a clean title; that is, the car is not claimed and is not on bail or under arrest. The vehicle certificate you get when you buy it contains all the data about the title of the object. If the car was already sold with an encumbrance or it appeared during the current ownership, the owner must pay off the debt or remove the arrest in order to donate the car. Thus, encumbrance is a legal obstacle to the conclusion of the act of donation since the free transfer of rights is possible only with a clear title.
Thus, the act of donation in Louisiana implies that:
Above, the review reveals the aims and features of the act of donation in Louisiana, and below, you will find brief but useful tips on filling out the form.
Despite the fact that the notary partially fills the act of donation out, we will still examine what data the form requires. To do this, we have prepared several steps for a filler to complete the document.
Specify the Parish
At the top of the document, enter the name of the parish where the act of donation takes place. If the car was purchased in another state or the current owner is not a resident of Louisiana, additional documents may be required.
Identify the Parties
Enter the name of the person or organization that grants the ownership rights (the donor) and the party that becomes the new owner of the subject vehicle (the donee).
Enter the Respective Vehicle Data
Fill in the four lines, specifying the make, model, year of the vehicle output identification number.
Confirm the Validity of the Donation
Determine the status of the relationship between the parties. Below on the line that requires you to specify the cost in dollars, enter “donation.” It ensures that the donor does not receive a monetary benefit from the ownership transfer, and the act is only indeed a donation.
Please note that the form warns that the current owner guarantees that the auto is free of encumbrances.
Sign the Act
Enter the full date of the act of donation. The section is followed by the signatures of the witnesses, the giver, and the recipient. The notary certifies the document last after you have checked all the data specified above.
The donor submits the act of donation along with the certificate of ownership of the car. When transferring rights, the current owner also enters the name of the new owner in the certificate. This certificate confirms the legal right of ownership, while the act of donation indicates that the vehicle was donated free of charge.