What is the difference between a lifetime gift and a testamentary gift?
A lifetime gift and a testamentary gift are both types of gifts that can be used to transfer assets between family members. However, there are some key differences between the two. A lifetime gift is an inter vivos gift, which means it is a gift that is given from one person to another while they are both living. These gifts may be given for any reason, such as a birthday or holiday present, or simply to show appreciation. In West Virginia, lifetime gifts are subject to the Uniform Gifts to Minors Act. This means that the person making the gift must provide certain information to the recipient, including the value of the gift and the name of the recipient’s guardian or custodian. A testamentary gift, on the other hand, is a gift that is given to an individual upon the death of the giver. This type of gift is specified in the giver’s will and is only valid upon the death of the giver. Testamentary gifts are often used to transfer assets to an individual’s heirs when they pass away. In West Virginia, testamentary gifts are subject to the rules of wills and probate. In conclusion, the key difference between a lifetime gift and a testamentary gift is when the gifts are transferred. Lifetime gifts are transferred while the giver is alive, while testamentary gifts are transferred upon the death of the giver.
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