Casey & Lundregan, P.C.
Call For Your Free Consultation
Local: 978-224-8893 Toll Free: 800-785-3588

Estate Planning: Lifetime Gifts

There are three steps involved in making a lifetime gift: the first is that the donor intends to give the gift, the second is that the gift is delivered to the donee, and the last step is that the donee has to accept the gift for it to be a valid transfer.

There are a couple different types of gifts including "outright gifts, gifts in trust, and gifts under the Uniform Transfers to Minors Act (UTMA)." Each type of gift differs in its outcome: the outright gift transfers all the rights of the property to the donee and the donor no longer has responsibility of the property, whereas the gift in trust still gives the donor some power as a result of the donor writing up the trust and determining when the transfer is going to occur whether it is transferred little by little or if it happens all at once. The UTMA gives the donor the ability to make a gift transfer to a minor without a trust, which in reality would be an outright gift to a minor. The gift usually benefits the donee more than the donor. There are taxes involved in a transfer of a gift of property including a gift tax and an estate tax that go together when it comes to the tax rate. Then there also is a generation-skipping transfer (gst) tax, which applies when a gift is given from a donor to a donee more than one generation away. The GST tax rate is currently 55%. How do you determine the value of a lifetime gift? The value of a gift and its subsequent applicable tax is determined at the time of the transfer and not afterwards. Usually expert appraisers can evaluate and give a recommendation on the value of a certain gift.

No Comments

Leave a comment
Comment Information
Email Us For a Response

How Can We Help You? Schedule Your Free Consultation Today!

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location
71 Washington Street
Salem, MA 01970

Toll Free: 800-785-3588
Phone: 978-224-8893
Fax: 978-745-3607
Salem Law Office Map

Phone Numbers