07 Dec Beware legal and tax traps when gifting
You have two main options for transferring wealth. You can gift during your lifetime or bequeath on death. Many of you will do both. This article deals with gifting during ones lifetime.
You may not be aware such gifts can be subject to legal strictures and challenges. This is most likely when the gift has significant value and the person gifting is elderly and vulnerable.
Definition of gift
A gift is a voluntary and gratuitous transfer of property from one individual to another. For a gift to be legally valid, three conditions must be met. There must be:
- an intention to gift the property;
- delivery of the property; and
- acceptance by the intended recipient.
Intention is the element most often in dispute. The onus is on the recipient to prove a gift was intended by the donor.
To read the remainder of this important article by Advisor to Client, CLICK HERE. If you have questions be sure to contact Harry or David.