Define: Inter Vivos

“Inter vivos” is a Latin term that translates to “between the living.” In legal contexts, it typically refers to transactions or gifts made during the lifetime of an individual.

Inter vivos gifts are transfers of property or assets made by one person to another during their lifetime, rather than through a will or inheritance after death. These gifts are often subject to certain legal requirements and tax implications.

Inter vivos gifts are made during the lifetime of the donor and typically take effect immediately, whereas testamentary gifts are specified in a will and take effect upon the donor’s death.

Inter vivos transactions can include gifts, sales, transfers of property, and other forms of conveyance made between living individuals.

Yes, inter vivos gifts may be subject to legal requirements such as proper documentation, delivery of the gift, acceptance by the recipient, and compliance with any applicable gift tax laws.

Inter vivos gifts can help individuals distribute their assets during their lifetime, reduce the size of their taxable estate, and provide financial assistance to loved ones. They may also allow for greater control over the distribution of assets and avoidance of probate.

In many jurisdictions, inter vivos gifts above a certain value are subject to gift tax. However, there are often exemptions and exclusions available, and the specific tax implications may vary depending on the jurisdiction and the value of the gift.

Generally, inter vivos gifts are irrevocable once they have been properly executed and delivered to the recipient. However, certain conditions or circumstances may allow for the revocation of a gift, such as fraud, duress, or undue influence.

To ensure the validity of inter vivos gifts, individuals should consult with a qualified attorney who can provide guidance on the legal requirements and implications of such gifts. Proper documentation, delivery, and compliance with applicable laws are essential to ensure the validity of inter vivos transactions.

One common misconception is that inter vivos gifts are always tax-free. While certain gifts may qualify for exemptions or exclusions from gift tax, larger gifts may be subject to taxation. Additionally, individuals should be aware of the potential impact of inter vivos gifts on their overall estate planning goals and tax liabilities. Consulting with a knowledgeable attorney or tax advisor can help individuals make informed decisions about inter vivos transactions.