An inter vivos gift is a transfer of property or assets made by a person during their lifetime, rather than through a will or at death. The term comes from Latin meaning “between the living” and refers to gifts that take effect immediately once they are completed.
In estate planning and real estate contexts, inter vivos gifts are commonly used to transfer money, property, or ownership interests to family members or others as part of long-term planning.
How an Inter Vivos Gift Works
An inter vivos gift involves three essential elements: intent, delivery, and acceptance.
The person making the gift, known as the donor, must intend to give the property voluntarily. The property must be delivered to the recipient, known as the donee, either physically or legally. The donee must accept the gift, which is generally presumed unless expressly rejected.
Once these elements are satisfied, the gift is complete and typically cannot be revoked.
Inter Vivos Gifts and Real Estate
Inter vivos gifts can involve real estate, such as transferring ownership of a house or adding someone to the title. This may be done by executing and recording a new deed that reflects the transfer.
When real estate is given as an inter vivos gift, ownership changes immediately. The recipient becomes a legal owner, subject to any existing liens or obligations attached to the property.
Because real estate transfers are significant and permanent, they require careful documentation and legal compliance.
Inter Vivos Gift vs. Inheritance
An inter vivos gift differs from inheritance in timing and process.
Inheritance occurs after death through a will, trust, or intestacy laws. An inter vivos gift occurs during the donor’s lifetime and generally does not go through probate.
Because the transfer is immediate, inter vivos gifts are often used to reduce the size of an estate or simplify future administration.
Tax Considerations
Inter vivos gifts may have tax implications, depending on the value of the gift and applicable tax laws. Some gifts may require filing gift tax returns, even if no tax is ultimately owed.
Real estate gifts can also have implications for property taxes, capital gains, and eligibility for exemptions. Recipients may receive a different tax basis than they would through inheritance.
Because tax rules can be complex and change over time, professional guidance is often recommended.
Inter Vivos Gifts and Estate Planning Strategy
Inter vivos gifts are frequently used as part of broader estate planning strategies. They may help distribute assets gradually, assist family members financially, or reduce future probate complexity.
However, making gifts during life also means giving up control. Once the gift is complete, the donor generally no longer has legal authority over the property unless specific rights are retained through legal structures.
Risks and Considerations
While inter vivos gifts can be beneficial, they also carry risks. Donors must consider whether they will need the asset later, how the transfer may affect relationships, and whether the recipient is prepared to manage the property responsibly.
For real estate, additional considerations include mortgage obligations, insurance coverage, and maintenance responsibilities.
Gifts may also affect eligibility for certain public benefits, depending on timing and jurisdiction.
Documentation and Record Keeping
Proper documentation is essential for inter vivos gifts. For real estate, this includes recorded deeds and updated ownership records. For financial gifts, clear records help establish intent and timing.
Keeping documentation organized reduces confusion and supports transparency in future transactions or estate administration.
Common Misunderstandings About Inter Vivos Gifts
A common misconception is that inter vivos gifts can be easily undone. In most cases, once a gift is completed, it cannot be revoked without the recipient’s consent.
Another misunderstanding is assuming inter vivos gifts avoid all taxes or legal obligations. While they may reduce probate involvement, they do not eliminate tax or reporting requirements.
Some people also assume inter vivos gifts automatically simplify estate matters. In reality, poorly planned gifts can create complications if not coordinated with an overall plan.
Why Inter Vivos Gifts Matter
Inter vivos gifts offer a way to transfer assets proactively and intentionally during life. They provide flexibility and can be tailored to individual goals and circumstances.
For homeowners, understanding inter vivos gifts is especially important when considering transferring property to family members. These decisions have long-term legal, financial, and personal implications.
In estate planning and real estate, an inter vivos gift represents a deliberate shift of ownership during life. When thoughtfully planned and documented, it can be an effective tool for managing assets and preparing for the future.
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