what is gift inter vivos 
a gift inter vivos a gift between the living in latin is the legal term that refers to a transfer or gift made during the grantor s life inter vivos gifts which include property related to an estate are not subject to probate taxes since they are not part of the donor s estate at death an inter vivos transfer is one made during the grantor s lifetime gifts that exceed 17 000 per year 16 000 in 2022 are subject to gift taxes if they are made to someone other than a spouse or a qualified charity the actual value of the gifted property is calculated at the time of the transfer the person receiving the gift does not need to report the gift to the irs or pay income tax on it but the giver of the gift must pay gift taxes on it if it exceeds the 17 000 threshold 1however there is a lifetime exclusion for the giver before gift taxes actually kick in adjusted annually for inflation in 2023 you can give 12 92 million in your lifetime without incurring any gift taxes an increase from the 2022 limit of 12 06 million 1understanding gift inter vivosa gift inter vivos is a useful estate planning strategy for several reasons giving a gift can help you reduce your taxable estate because it reduces your overall net worth additionally if you give a gift to a charity you can deduct the amount from your taxable income for the year many people give inter vivos gifts simply because they want to oversee the gift during their lifetime unlike gifts that are bequeathed through a will or a trust the reporting requirements on gift giving are minimal so if gifts are used to reduce the value of an estate the giver s property and affairs can retain a certain measure of confidentiality most gifts that exceed the gift limit can be added to the giver s lifetime exclusion amount of 12 92 million 1making an inter vivos giftthe donor must be of legal capacity and be at least 18 years of age when making the gift the intent to make a gift should be confirmed in writing and there must be a present and irrevocable transfer of title or right of ownership a donor cannot intend for the gift to transfer after his death delivery should be immediate either physically or symbolically particularly when the gift involves the transfer of property or something that is physically impractical to deliver following the gift the person making the gift relinquishes any rights to the property and can not get it back without the permission of the party that received it any attempt to control the gifted property or derive a benefit from it may void the gift s tax exempt nature thus putting the legal status of the transfer in question and making it susceptible to tax the recipient must accept the gift as well should the gift have actual value the law assumes the recipient will accept it however it is customary for the person receiving the gift to indicate their acceptance in writing to avoid confusion and formally complete the transaction example of an inter vivos giftjulia wants her grandson mike to have her family home mike has recently married has a baby on the way and julia is interested in moving to her second home in florida to escape the cold winters julia has just retired and is in good health and she knows mike could use the property or the money from the sale of the property right away to help support his growing family so rather than make mike wait until she dies to inherit her property she makes mike an inter vivos gift of the home after which he has full ownership and can do with it as she pleases since julia will no longer own the home at the time of her death it will not pass through probate or be subject to estate tax however the gift exceeds the gift tax limits so it might be subject to gift taxes however if julia notified the irs of the gift via her tax filing and added it to her lifetime gift exclusion it is likely taxes would not need to be paid 