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GIFT INTER VIVOS POLICIES In its simplest terms, a Gift Inter Vivos plan allows your clients to protect their beneficiaries from any potential inheritance tax (IHT) liability on a gift they have given, by providing cover for the potential tax over the 7 year period, once the gift is made.
An inter vivos trust can be created orally or by writing. However, oral inter vivos trusts may not be accepted by certain jurisdictions and must always comply with the statute of frauds. An inter vivos trust can be revocable or irrevocable.
The essential elements of an inter vivos gift are: (1) present donative intent (the donor's clear intent to pass title/interest to the property to the recipient); (2) delivery (a surrender of all or some dominion and control by the donor and allowing the donee to have possession, which may take different forms ...
An intervivos trust is an agreement where the person creating the trust (referred to variously as the grantor, settlor, or trustor) during the creator's life appoints a trustee to receive assets for the benefit of the creator and/or one or more beneficiaries.
Both types of gifts share three elements which must be met in order for the gift to be legally effective: donative intent (the intention of the donor to give the gift to the donee), the delivery of the gift to the donee, and the acceptance of the gift.