An Inter Vivos Gift is a transfer of property or assets made by an individual (the donor) to another individual (the donee) during the donor’s lifetime. This type of gift is made without any expectation of receiving something in return and is often intended to provide support or benefits to the recipient while the donor is still alive.
Inter vivos gifts can include a variety of assets, such as cash, real estate, personal property, stocks, or other financial instruments. The key characteristic of an inter vivos gift is that it is irrevocable once completed, meaning the donor cannot reclaim the gift after it has been given. To be legally effective, an inter vivos gift generally requires three essential elements:
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Donative Intent: The donor must have a clear intention to make a gift and relinquish control of the asset.
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Delivery: There must be an actual or constructive delivery of the gift to the donee. This means the donor must physically transfer the asset or take steps to ensure the donee has access to it.
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Acceptance: The donee must accept the gift, which is typically assumed if the gift is beneficial.
For example, if a parent transfers the title of a car to their child as a gift, this action constitutes an inter vivos gift if the parent intended to give the car away, delivered the title to the child, and the child accepted the gift.
In the context of Texas law, particularly in areas like Houston, it is important for donors to be aware of potential gift tax implications and the need for proper documentation to avoid disputes later on. Texas does not impose a state gift tax, but federal regulations may apply, so proper planning and record-keeping are crucial to ensure compliance and reduce the risk of challenges to the gift’s validity.
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