Gift Inter Vivos

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Definition of 'Gift Inter Vivos'

A gift inter vivos is a present made during one's lifetime. It is a transfer of property from one person to another without any expectation of repayment. The person who makes the gift is called the donor, and the person who receives the gift is called the donee.

There are a few different types of gifts inter vivos. One type is a cash gift. This is simply a transfer of money from one person to another. Another type is a gift of property. This can be anything from a car to a house to a piece of jewelry.

Gifts inter vivos can be made for any reason. They can be made to family members, friends, or even strangers. There are no restrictions on who can receive a gift inter vivos.

There are also no restrictions on the amount of money or property that can be gifted. However, there are some tax implications to consider when making a gift inter vivos.

If the gift is worth more than $15,000, it will be considered a taxable gift. The donor will have to pay gift taxes on the amount of the gift that exceeds the $15,000 limit.

Gift taxes are progressive, meaning that the higher the value of the gift, the higher the tax rate. The gift tax rate starts at 18% and goes up to 40%.

There are a few ways to avoid or reduce gift taxes. One way is to make the gift over multiple years. This will spread out the gift and reduce the amount of tax that is owed.

Another way to reduce gift taxes is to use the annual gift tax exclusion. This is a limit of $15,000 that each person can give to each other person per year without having to pay gift taxes.

Gifts inter vivos can be a great way to transfer property or money to loved ones. However, it is important to be aware of the tax implications before making a gift.

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