Gift Inter Vivos

A gift inter vivos refers to the transfer of property from a donor to a donee during the donor's lifetime, made without any consideration or compensation. The donor thereby relinquishes all control or ownership over the gifted property.
On this page

Definition

A gift inter vivos is a legal term referring to a gift of property that is given by one living person (the donor) to another (the donee) without any requirement for consideration or compensation. This transfer effectively means that the donor irrevocably gives up ownership, control, and all rights to the property, which becomes the sole possession of the donee.

Examples

  1. Monetary Gift: A parent transfers a sum of money to their adult child’s bank account without expecting any repayment.
  2. Real Estate Transfer: An individual signs over the deed of a piece of real estate to a friend or family member without receiving any monetary compensation.
  3. Valuable Asset Transfer: A person gifts a car to a sibling out of goodwill, without any form of payment being involved.
  4. Digital Assets: Transferring ownership of valuable digital assets, like cryptocurrency, without expecting a return.

FAQs About Gift Inter Vivos

1. What is required for a gift inter vivos to be legally binding?

  • For a gift inter vivos to be legally binding, the donor must have a clear intention to give the gift, the gift must be delivered to the donee, and the donee must accept the gift.

2. Can a gift inter vivos be revoked?

  • Generally, no. Once the gift has been completed—meaning the donor has delivered the gift and the donee has accepted it— the gift cannot be revoked.

3. Are there tax implications for gift inter vivos?

  • Yes, there can be significant tax implications. The donor may be subject to gift tax depending on the value of the gift and the jurisdiction’s tax laws. It is important to consult with a tax professional.

4. How does a gift inter vivos differ from a bequest?

  • A gift inter vivos is given during the donor’s lifetime, whereas a bequest is a gift given through a will, effective upon the donor’s death.

5. What types of property can be given as a gift inter vivos?

  • Almost any type of property can be given as a gift inter vivos, including real estate, personal property, money, and other financial assets.
  • Donee: The individual or entity receiving a gift.
  • Donor: The individual or entity giving a gift.
  • Gift Causa Mortis: A gift of personal property made in contemplation of imminent death, which is revocable if the donor survives.
  • Estate Tax: A tax on the transfer of the estate of a deceased person.
  • Grantor: Another term for the donor, especially used in the context of trust and estate law.

Online References

Suggested Books for Further Studies

  • “Wills, Trusts, and Estates” by Jesse Dukeminier and Robert H. Sitkoff
  • “The Complete Guide to Planning Your Estate in Texas” by Linda C. Ashar and Dean Hanewinckel
  • “Fundamentals of Modern Property Law” by Edward H. Rabin, Roberta Rosenthal Kwall, and Jeffrey L. Kwall
  • “Federal Income Taxation of Estates, Trusts, and Beneficiaries” by Richard B. Stephens and Guy B. Maxfield

Fundamentals of Gift Inter Vivos: Estate Planning Basics Quiz

Loading quiz…

Thank you for diving into the intricate world of property transfers and understanding the nuances of a gift inter vivos. Keep exploring and learning!

Gift Splitting
Gift Deed