gift

A voluntary transfer of property to another made gratuitously and without consideration. Bradley v. Bradley, Tex.Civ.App., 540 S.W.2d 504, 511.

Essential requisites of "gift" are capacity of donor, intention of donor to make gift, completed delivery to or for donee, and acceptance of gift by donee. In tax law, a payment is a gift if it is made without conditions, from detached and disinterested generosity, out of affection, respect, charity or like impulses, and not from the constraining force of any moral or legal duty or from the incentive of anticipated benefits of an economic nature.

@ absolute gift

An absolute gift, or gift inter vivos, as distinguished from a testamentary gift, or one made in contemplation of death, is one by which the donee becomes in the lifetime of the donor the absolute owner of the thing given, whereas a donatio mortis causa leaves the whole title in the donor, unless the event occurs (the death of the donor) which is to divest him. The only important difference between a "gift" and a "voluntary trust" is that in the case of a gift the thing itself passes to the donee, while in the case of a trust the actual, beneficial, or equitable title passes to the cestui que trust, and the legal title is transferred to a third person, or retained by the person creating it. In re Alberts' Estate, 38 Cal.App.2d 42, 100 P.2d 538, 540.

In old English law, a conveyance of lands in tail; a conveyance of an estate tail in which the operative words are "I give," or "I have given." 2 Bl.Comm. 316.

See also anatomical gift

- annual exclusion

- endowment

- symbolic delivery

- taxable gift

- vested gift

antenuptial gift

antenuptial gift. Voluntary transfer of property before a marriage from one spouse to another, commonly made in exchange for a waiver of rights to property after the marriage.

@

- class gift

@ gift in contemplation of death

See gift causa mortis

- gifts within three years of death.

@ split gift

See gift splitting election.

@ testamentary gift

Voluntary transfer of property to take effect upon the death of the donor

@ gift causa mortis

/gift kozs mortss/ A gift of personal property made in expectation of donor's death and on condition that donor die as anticipated. Antos v. Bocek, 9 Ariz.App. 368, 452 P.2d 533, 534.

A gift causa mortis is effected only if the following conditions are met: the donor must be stricken with some disorder which makes death imminent, death of donor must ensue as a result of the disorder existing at time the gift was made without any intervening perfect recovery, gift must have been made to take effect only in event of donor's death by his existing disorder, and there must have been an actual delivery of the subject of the donation to the donee. In re Vardalos' Estate, 24 Ill.App.3d 520, 320 N.E.2d 568, 571.

See also gifts within three years of death

@ gift deed

A deed for a nominal sum or for love and affection. Bertelsen v. Bertelson, 49 Cal.App.2d 479, 122 P.2d 130, 133

@ gift enterprise

A scheme for the division or distribution of articles to be determined by chance amongst those who have taken shares in the scheme. A sporting artifice by which, for example, a merchant or tradesman sells his wares for their market value, but, by way of inducement, gives to such purchaser a ticket which entitles him to a chance to win certain prizes to be determined after the manner of a lottery

@ gift inter vivos

/gift intar vayvows/ Gifts between the living, which are perfected and become absolute during lifetime of donor and donee. Neal v. Neal, 194 Ark. 226, 106 S.W.2d 595, 600.

An immediate, voluntary, and gratuitous transfer of personalty by one to another. Tilton v. Mullen, 101 Ohio App. 129, 137 N.E.2d 125, 128, 130.

The essentials of an inter vivos gift are:

(1) donative intention;

(2) delivery to donee; in the case of a chose in action not capable of delivery, the donor must during his lifetime strip himself of all dominion over the thing taken;

(3) acceptance by donee. In re Posey's Estate, 89 N.J.Super. 293, 214 A.2d 713, 719

@ gift in trust

Gift made in such manner that the donee acquires legal title for the beneficial enjoyment of the cestui que trust

@ gift over

A gift to one for life, and from and after his death to another. Broadly, any transfer of property to take effect after the termination of an intermediate estate or estates such as a life estate, e.g. to A for life, remainder to B

@ gift splitting election

A special election for Federal gift tax purposes whereby husband and wife can treat a gift by one of them to a third party as being made one-half by each. The major advantage of the election is that it enables the parties to take advantage of the nonowner spouse's annual exclusion and unified credit. I.R.C. No. 2513

@ Gifts to Minors Act

@ Gifts (or Transfers) to Minors Act

Gifts (or Transfers) to Minors Act

A Uniform Act adopted by most states providing for a means of transferring property (usually stocks and bonds) to a minor. The designated custodian of the property has the legal right to act on behalf of the minor without the necessity of a guardianship.

Generally, the custodian possesses the right to change investments (e.g., sell one type of stock and buy another), apply the income from the custodial property to the minor's support, and even terminate the custodianship. In this regard, however, the custodian is acting in a fiduciary capacity on behalf of the minor. The custodian could not, for example, appropriate the property for his or her own use because it belongs to the minor. During the period of the custodianship, the income from the property is taxed to the minor. The custodianship terminates when the minor reaches legal age.

One of the primary reasons for making gifts to minors pursuant to the requirements of the Uniform Act had been to receive favorable tax treatment; however, the Tax Reform Act of 1986 reduced the tax benefits of such income shifting. This uniform act has been replaced by and renamed the Uniform Transfers to Minors Act.

See Transfers to Minors Act

@ gifts within three years of death

Some taxable gifts automatically are included in the gross estate of the donor if death occurs within three years of the gift. I.R.C. No. 2035

@ gift tax

A tax imposed on the transfer of property by gift. Such tax is imposed upon the donor of a gift and is based on the fair market value of the property on the date of the gift.

See also gift splitting election

- tax

2) A tax imposed on the transfer of assets without adequate consideration. The federal gift tax is levied on the donor; however, some states impose a gift tax on the donee.

@ gift to a class

A gift of aggregate sum to body of persons uncertain in number at time of gift, to be ascertained at future time, who are all to take in equal shares, or some other definite proportion; share of each being dependent for its amount upon ultimate number taking.

See also class gift

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