are gift letters legally binding 
yes a gift letter is legally binding the information on the letter is used and relied upon by multiple parties and both the donor and recipient are expected to be bound to the terms of the gift letter the bottom linea gift letter is a written signed document that outlines that a lump sum of given by one party does not need to be repaid this letter is often required by lenders when issuing mortgages or home loans as individuals may be more likely to receive large sums of money in advance of their real estate purchase 