**Gift** (noun) — A voluntary transfer of property, money, or other assets from one person (the donor) to another (the donee) without consideration or compensation, made with the intention that the transfer be gratuitous and irrevocable.
A gift is when you give something to someone without expecting anything in return. In estate planning, gifts can be made during your lifetime or through your will after you die.
Lifetime gifts might include giving money to help a child buy a home, transferring shares to a family member, or donating to charity. Gifts in your will are often called bequests or legacies.
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Making gifts during your lifetime can be a useful estate planning strategy. You get to see your loved ones benefit from your generosity, and in some cases, lifetime gifts may reduce the size of your estate for tax purposes (though this varies significantly by country).
However, there are a few things to keep in mind. In some jurisdictions, large gifts made shortly before death can be challenged or "clawed back" into your estate, especially if they were made to avoid creditors or deprive dependents. Additionally, if you give away assets but continue to benefit from them (like transferring your house to children but still living there rent-free), tax authorities may not recognize the gift as complete.
Some countries impose gift taxes on transfers above certain thresholds, while others (like Australia and the UK) generally don't tax gifts. If you're considering making substantial gifts, it's worth understanding the rules in your jurisdiction.
**Related terms:** [Gift Tax](/dictionary/gift-tax), [Donor](/dictionary/donor), [Donee](/dictionary/donee), [Bequest](/dictionary/bequest)
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