What is the difference between a lifetime gift and a testamentary gift?
In Maryland, the difference between a lifetime gift and a testamentary gift is significant. A lifetime gift is any gift given during a person’s lifetime, while a testamentary gift is a gift given in a will that is only distributed upon the death of the testator. A lifetime gift is usually given to family members or friends and does not have to pass through probate. This means that the recipient of the gift will not have to wait for the will to be processed by a court before they can take possession of the gift. On the other hand, testamentary gifts are subject to the court’s approval and are distributed according to the rules set forth in the will. The type of inheritance law in Maryland also determines the kind of gift that can be given. If someone wants to give a lifetime gift, they must ensure that they follow the applicable state laws. Testamentary gifts are usually subject to more stringent rules, such as the necessity of submitting a valid will to the court. Ultimately, the type of gift used in Maryland depends on the individual making the decision. It is important to understand the difference between a lifetime gift and a testamentary gift before gifting funds to a loved one. Doing so can help ensure that the wishes of the giver are properly respected and carried out upon their death.
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