Property Transfers and Gifting

Lifetime gifting is an estate planning technique that is best for assets which have substantial amount of appreciation potential!

Property transfers and gifting may reduce tax liabilities, probate, estate administration expenses and overall estate tax savings. 

In order to qualify as a gift, the property must be accepted by the donee and must separate the donor of control, dominion and title over the gifted assets.

“From the Donor to the Donee”

The donor is the person who makes the gratuitous transfer of assets.

The donee is and individual or entity, who is the recipient of lifetime gift.

Gifting Benefits

Gifting can be stated as an “Inter Vivos Gift,” as the gift is made while the donor is alive.

The lifetime gift is a gratuitous transfer of assets for less than full and adequate consideration.

On top of an outright transfer of assets to an individual, gifts can take other forms:

  1. The forgiveness of debt
  2. Waive interest on an intra-family interest-free or below market loan
  3. Granting of the benefits of an insurance policy
  4. A transfer of property to a trust

Exempt Gifts

  1. Qualified disclaimer
  2. Property transfer between spouses in a divorce
  3. Tuition and education paid for to an institution on behalf of another individual
  4. Qualifying medical care