An Act of Donation in Louisiana is the formal legal document used to give property away without payment, and for most transfers it must be signed before a notary and two witnesses as an “authentic act.” Skip that step and the donation is void from the start, as if it never happened. Louisiana’s civil law tradition sets stricter rules for gifts than most states, and the details around form, forced heirs, taxes, and Medicaid are where donors and recipients most often run into trouble.
What an Act of Donation Actually Is
Louisiana’s Civil Code recognizes only two ways to give property away: a donation inter vivos, made during the donor’s lifetime, or a donation mortis causa, which takes effect at death.1Justia. Louisiana Civil Code Article 1467 – Methods of Acquiring or Disposing Gratuitously Any gift arrangement that falls outside these two forms is unenforceable.
The Act of Donation people usually mean is the inter vivos version. It works like a contract: the donor gives up ownership right now and permanently, and the donee accepts it.2Justia. Louisiana Civil Code Article 1468 – Donations Inter Vivos Definition Once accepted, the donor generally cannot take it back. A donation mortis causa follows the rules for wills instead.
The Authentic Act Requirement
For most donations, Louisiana requires an authentic act. Get this wrong and the donation is absolutely null.3Justia. Louisiana Civil Code Article 1541 – Form Required for Donations
An authentic act must be signed before a notary public and two witnesses. Each party, each witness, and the notary signs, and each person’s typed or printed name must appear legibly beneath their signature.4Louisiana State Legislature. Louisiana Civil Code Article 1833 – An Authentic Act The notary verifies identities, confirms the donor understands what they are doing, and makes sure the transfer is voluntary. Witnesses cannot have a personal stake in the outcome. Miss any of these pieces and the transfer collapses.
When You Do Not Need a Notary
Not every gift requires an authentic act. Louisiana allows a “manual gift” of tangible movable property, such as furniture, vehicles, jewelry, or cash, through physical delivery to the donee.5Louisiana State Legislature. Louisiana Civil Code Article 1543 – Manual Gift Handing over the keys to a car, with intent to give it, qualifies. The catch is proof: if a dispute comes up later, written documentation of the donor’s intent helps.
Intangible property like stocks, bonds, and investment accounts sits in its own category. These can be donated either by authentic act or by following the usual transfer procedure for that asset, such as endorsing and delivering a stock certificate or directing a brokerage to move holdings into the donee’s account.6Justia. Louisiana Civil Code Article 1550 – Form for Donation of Certain Incorporeal Movables
Who Can Donate and Who Can Receive
The donor must have legal capacity, meaning they can understand in general terms what they are giving away and the consequences.7Justia. Louisiana Civil Code Article 1477 – Capacity to Donate, Mental Condition of Donor Donors must be at least 18. A donation obtained through fraud or coercion is null.8Justia. Louisiana Civil Code Article 1478 – Nullity of Donation
The donee has to accept, either personally or through a representative. For minors or people under interdiction, a legal representative can accept for them.
One rule catches people off guard: you can only donate property you currently own. A donation of future property, something the donor expects to acquire later, is null as to that property.9Justia. Louisiana Civil Code Article 1529 – Donation of Future Property You cannot promise to give someone a house you have not bought yet.
Forced Heirship Limits on What You Can Give Away
Louisiana is the only state with forced heirship, and it directly caps how much a person can give away. Forced heirs are the donor’s children who, at the donor’s death, are either 23 or younger, or permanently unable to care for themselves due to mental or physical incapacity. A child counts as 23 or younger until they actually turn 24.
With one forced heir, donations (lifetime and at death combined) cannot exceed three-fourths of the donor’s property; the remaining fourth is the forced portion. With two or more forced heirs, the cap drops to one-half.10Louisiana State Legislature. Louisiana Civil Code Article 1495 – Amount of Forced Portion and Disposable Portion
A donation that cuts into the forced portion is not automatically void. It is “reducible,” meaning the forced heir can bring an action after the donor’s death to claw back enough to restore their share.11Louisiana State Legislature. Louisiana Civil Code Article 1503 – Reduction of Excessive Donations All donations made within the last three years of the donor’s life get factored back in when calculating the estate for this purpose. A parent who gives a house to one child during life can inadvertently trigger a reduction action from another child later.
When a Donation Can Be Revoked
Donations inter vivos are meant to be permanent, but Louisiana law allows revocation on three grounds: the donee’s ingratitude, failure to fulfill conditions attached to the donation, or a legal or conventional return.
Ingratitude has a narrow definition. Under the Civil Code, revocation is limited to two situations: the donee attempted to kill the donor, or the donee was guilty of cruel treatment, criminal acts, or serious injuries toward the donor.12Justia. Louisiana Civil Code Article 1557 – Revocation for Ingratitude Courts have read “cruel treatment” to reach things like restricting an elderly donor’s visitors, controlling their medication, and verbal or physical abuse. The test is whether the donee’s conduct would be “naturally offensive” to that particular donor.
Revocation for failure to fulfill a condition is simpler: if the donation was conditional and the donee does not perform, the donor can seek dissolution. Once a donation is complete, changing its terms requires both parties to agree.
Donating Property With a Mortgage
If the property carries a mortgage, the loan documents almost certainly contain a “due-on-sale” clause, which lets the lender demand full repayment when the property is transferred without written consent.13eCFR. Part 191 – Preemption of State Due-on-Sale Laws A donation counts as a transfer. Recording the act can trigger the acceleration.
Federal law protects certain family transfers of a borrower-occupied home. A lender cannot enforce the clause when the property passes to a spouse or children through divorce or death, or when a spouse or child becomes a co-owner, or when the property moves into a living trust where the borrower stays the beneficiary and occupant.13eCFR. Part 191 – Preemption of State Due-on-Sale Laws A donation of mortgaged property to an adult child who will live there while the parent moves out does not clearly fit any exception. Call the lender before signing anything.
Federal Gift Tax and the Basis Trap
Louisiana repealed its state gift tax in 2008, so the state itself will not tax the transfer.14Louisiana’s Gift, Inheritance and Estate Taxes. Louisiana’s Gift, Inheritance and Estate Taxes Federal rules still apply.
For 2026, you can give up to $19,000 per recipient without any federal gift tax reporting. Married couples can combine to give $38,000 per recipient. Gifts above the annual exclusion do not automatically create tax owed; they reduce your lifetime estate and gift tax exemption, which stands at $15,000,000 for 2026.15Internal Revenue Service – IRS.gov. What’s New – Estate and Gift Tax IRS Form 709 is required for any year your gifts to a single recipient exceed the annual exclusion.16Internal Revenue Service – IRS.gov. Instructions for Form 709
The bigger tax issue is basis. When you donate property during your lifetime, the recipient takes your original cost basis for capital gains purposes, not the current market value.17Office of the Law Revision Counsel. 26 USC 1015 – Basis of Property Acquired by Gifts and Transfers in Trust If you bought a house for $80,000 and donate it when it is worth $300,000, the recipient’s basis is $80,000. Sell it for $300,000 and they owe capital gains tax on $220,000.
Property inherited at death gets a stepped-up basis to fair market value on the date of death, and in that same scenario the recipient would owe nothing on the sale. For appreciated real estate, the difference between giving it away now and leaving it in your estate can be enormous. Run the numbers with a tax professional before signing.
Medicaid Look-Back on Gifts
Giving property away to qualify for Medicaid long-term care backfires in Louisiana. The Medicaid program reviews all asset transfers made within 60 months before an application for long-term care or home and community-based waiver services, and a gift “for love and consideration” is not a transfer for fair market value.18Louisiana Department of Health. I-1670 Transfer of Assets for Less Than Fair Market Value
If a donation falls within that 60-month window, the state calculates a penalty period of Medicaid ineligibility. The penalty equals the uncompensated value of the donated asset divided by $7,200, the average monthly private pay nursing facility rate used for applications received on or after September 1, 2024.18Louisiana Department of Health. I-1670 Transfer of Assets for Less Than Fair Market Value Donate a $180,000 house and you are looking at roughly 25 months of ineligibility, during which you would pay for care out of pocket.
Recording the Act and What It Costs
For donations of immovable property, the notary who executes the act has 15 days to record it with the clerk of court in the parish where the property sits. Orleans Parish has its own procedure, where the original goes first to the notarial archives and then to the register of conveyances. A notary who misses the deadline faces a $200 fine per violation plus liability for any damages the parties suffer.19Louisiana State Legislature. Louisiana Revised Statutes 35:199 – Duty to File, Register, or Record Notarial Instruments
Recording fees vary by parish, generally $100 to $300 for a standard property transfer document. On top of that, you pay the notary’s professional fee. Louisiana notaries set their own rates, so call a few for quotes. Recording protects the donee by putting the transfer in the public record; without it, the donation may not hold up against third parties who later claim an interest in the property.