What does the term "donation inter-vivos" refer to?

What does the term "donation inter-vivos" refer to?

• A. A donation made during the lifetime of the donor.
• B. A donation made posthumously.
• C. A donation intended for religious purposes.
• D. A promise of a future gift.

Answer: (A)

The term "donation inter-vivos" specifically refers to a transfer of property or assets that occurs during the lifetime of the donor. This type of donation is made while the donor is alive, distinguishing it from other forms of giving that take effect after death, such as bequests in a will, which would fall under testamentary gifts. Understanding that "inter-vivos" directly translates to "between the living" in Latin highlights its focus on present, active engagement in philanthropy or asset transfer, as opposed to future or conditional transfers. This makes the concept crucial in tax considerations and legal communications involving gifts, ensuring clarity about when the transfer takes place and its implications for tax liabilities. Other options, such as posthumous donations, gifts intended for specific purposes, or promises of future gifts, do not align with the definition of inter-vivos, reinforcing the significance of timing in the classification of donations.

The term "donation inter-vivos" specifically refers to a transfer of property or assets that occurs during the lifetime of the donor. This type of donation is made while the donor is alive, distinguishing it from other forms of giving that take effect after death, such as bequests in a will, which would fall under testamentary gifts.

Understanding that "inter-vivos" directly translates to "between the living" in Latin highlights its focus on present, active engagement in philanthropy or asset transfer, as opposed to future or conditional transfers. This makes the concept crucial in tax considerations and legal communications involving gifts, ensuring clarity about when the transfer takes place and its implications for tax liabilities. Other options, such as posthumous donations, gifts intended for specific purposes, or promises of future gifts, do not align with the definition of inter-vivos, reinforcing the significance of timing in the classification of donations.