Definition
A Gift Inter Vivos is a legal term derived from Latin meaning “between the living.” It refers to the transfer of property or assets from one living person (the grantor or donor) to another living person (the grantee or donee) during the grantor’s lifetime. Unlike bequests or legacies that take effect upon the donor’s death, inter vivos gifts are completed and effective immediately when the transfer is executed.
Requirements and Mechanism
Legal Requirements
To constitute a valid Gift Inter Vivos, several legal requirements must be met:
- Intention: The donor must have a clear intent to gift the property.
- Delivery: The property must be delivered to the donee, with physical handover where possible.
- Acceptance: The donee must accept the gift.
- Irrevocability: Once made, an inter vivos gift cannot be revoked by the donor.
Mechanism of Transfer
The mechanism involves the physical or symbolic transfer of ownership. In cases where physical delivery is impractical (e.g., real estate), symbolic delivery accompanied by relevant documentation (e.g., deeds) suffices.
Example
Practical Scenario
Consider a parent who wishes to transfer ownership of a family heirloom, such as a vintage automobile, to their adult child. The parent expresses the intent to gift the car, hands over the keys along with the title deed, and the child accepts the gift. This meets all the conditions of a Gift Inter Vivos: intent, delivery, and acceptance.
Historical Context
The concept of Gift Inter Vivos has been recognized and utilized since ancient times. Roman law included detailed provisions about such transactions, emphasizing the necessity to distinguish between gifts made during one’s life and those intended to take effect after one’s death.
Legal Implications and Considerations
Tax Implications
In many jurisdictions, such gifts may be subject to gift taxes, depending on the value of the gift and the relationship between the donor and donee. It is advisable to consult legal and financial experts to understand the tax liabilities.
Comparisons with Testamentary Gifts
A Testamentary Gift differs in that it takes effect after the donor’s death and is typically outlined in a will. Unlike inter vivos gifts, testamentary gifts can be revoked or altered until the donor’s death.
Related Terms
- Donor: The individual who makes the gift.
- Donee: The individual who receives the gift.
- Deed of Gift: A legal document that formally records the transfer.
FAQs
Q1: Can a Gift Inter Vivos be challenged in court? Yes, it can be challenged if there is reasonable belief that the donor did not have the capacity to make the gift, or if there is evidence of undue influence or fraud.
Q2: What is the difference between a Gift Inter Vivos and a trust? A Gift Inter Vivos is an outright transfer of property, whereas a trust involves a fiduciary relationship where one party holds property for the benefit of another.
References
- Black’s Law Dictionary
- IRS Guidelines on Gift Taxes
- “Law of Property” by Sir John William Salmond
The concept of Gift Inter Vivos facilitates the immediate transfer of property between living individuals, distinguishing it from legacy gifts that take effect posthumously. Understanding the requirements and implications of such transfers ensures their proper execution and legal validity. Whether for sentimental reasons or strategic estate planning, inter vivos gifts play a pivotal role in contemporary wealth management and legal practices.
