What is the difference between a lifetime gift and a testamentary gift?
A lifetime gift and a testamentary gift both involve the giving of possessions from a giver to a recipient. However, they differ in when the gift is given and how it is given. A lifetime gift is a gift that is given while the giver is alive. It is also referred to as an inter vivos gift. Lifetime gifts are usually put into place with the assistance of an attorney. This ensures that the gift is legally valid and will not be contested later. Since a lifetime gift is given while the giver is alive, they will still maintain access to the item until they die. A testamentary gift is a gift that is given after the giver dies. They are usually included in the giver’s will. The giver will no longer have access to the item after they have died, and the recipient will be granted the gift after the giver’s death. It is important to note that testamentary gifts must be fulfilled after the giver’s death and cannot be changed. In conclusion, the main difference between a lifetime gift and a testamentary gift is when the gift is given. A lifetime gift is given while the giver is alive and a testamentary gift is given after the giver has died. It is also important to note that for both gifts, it is important to consult an attorney to ensure that the gift will be legally valid.
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