Federal Gift Taxes
A gift is generally deﬁned as the voluntary transfer of property (including money) to another person completely free of payment or strings while both the giver (donor) and the recipient (donee) are still alive. Such lifetime gifts are treated differently from a gift made in a will, which is properly known as a bequest. To be a true, completed gift, there are three basic requirements: (1) the donor must intend to make a gift; (2) the donor must deliver the gift; and (3) the donee must accept the gift.
This article is a basic overview on concepts related to the federal gift tax and is intended to give individuals points to consider as they engage in the estate planning process. Do not consider this article to be exhaustive as the possible impact of federal gift tax will vary with each individual situation. This article is considered educational in nature and should not be considered legal advice. Consult with qualiﬁed legal and tax professionals who can provide expert advice on specific needs. Also consult with federal websites and publications that contain the most up-to-date information on federal gift tax law.