Definition
A donee is a recipient of a gift or benefit provided by another person, known as the donor. In legal terms, the donee does not need to offer anything in return (known as consideration) for this gift. The donee can be an individual, an organization, or any entity that receives a transfer of assets, rights, or interests from a donor. Donees can also be recipients of powers or property via trusts established by donors.
Examples
- Personal Gift: Sarah gives her friend John a valuable painting as a gift. John, as the recipient, is the donee.
- Trust Beneficiary: A grandmother sets up a trust fund for her grandson. The grandson is the donee of the trust.
- Charitable Donation: A business donates $50,000 to a charitable organization. The charitable organization is the donee in this instance.
Frequently Asked Questions
What is the difference between a donor and a donee?
The donor is the person or entity who gives the gift, while the donee is the one who receives it.
Do donees need to pay taxes on gifts received?
Tax laws vary by jurisdiction, but in many places, donees may not need to pay taxes on gifts. The responsibility often lies with the donor, although large gifts might be subject to special tax rules.
Can a donee refuse a gift?
Yes, a donee has the right to refuse any gift. If the donee chooses to refuse, the gift does not transfer to them.
What is a donee beneficiary in a trust?
In a trust setup, a donee beneficiary is the person or entity designated to receive benefits or assets according to the terms of the trust.
How is a donee protected legally?
Donees are protected under the law concerning the acceptance and administration of gifts. Contracts and legal documents can explicitly state the conditions and protections for donees.
Related Terms
- Donor: The person or entity offering the gift or benefit.
- Gift: A transfer of property, rights, or interests from the donor to the donee without consideration.
- Consideration: Something of value exchanged between parties in a contract; not required in a gift.
- Trust: A legal arrangement in which a trustee holds and manages property or assets for the benefit of the beneficiary, who can also be the donee.
- Beneficiary: A person or entity entitled to receive benefits from a trust, insurance policy, or will.
Online Resources
- Investopedia – Gift
- IRS Gift Tax Information
- National Trust – Information about Trusts and Beneficiaries
Suggested Books for Further Studies
- “Wills, Trusts, and Estates, Tenth Edition” by Jesse Dukeminier, Robert H. Sitkoff
- “The Law of Trusts and Trustees” by George Gleason Bogert, George Taylor Bogert
- “Understanding Trusts and Estates” by Roger W. Andersen
Fundamentals of Donee: Legal Concepts Basics Quiz
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