What Is a Gift of Equity? A gift of equity is the sale of a residence to a family member or someone with whom the seller has a close relationship, at a price below the current market value as determined by a professional appraisal. The difference between the actual sales price and the market value
What Is a Gift Causa Mortis? Gift causa mortis is a gift of personal property made with the expectation that the person giving the gift will soon die. Key Takeaways Gift causa mortis is when a person provides a gift to another because they believe that will soon die.This type of gift, unlike a transfer
What Is Gifted Stock? Gifted stock refers to a stock that is given to someone as a gift. In other words, it’s the transfer of stock from one person or entity to another. Gifting company shares with the potential to grow significantly in value can make a nice present, though it’s worth bearing in mind
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
What Is a Gift in Trust? A gift in trust is a special legal and fiduciary arrangement that allows for an indirect bequest of assets to a beneficiary. The purpose of a gift in trust is to avoid the tax on gifts that exceed the annual gift tax exclusion limit. This type of trust is
What Is a Gift Letter? A gift letter is a piece of legal, written correspondence explicitly stating that money received from a friend or relative is a gift. Gift letters for tax purposes often come into play when a borrower has received assistance in making a down payment on a new home or other real
What Is Gift Splitting? The term gift splitting refers to an estate planning tool that married couples can use to double their allowed annual gift tax exclusion amount. The gift tax exclusion is the amount that someone can transfer to another person as a gift without having to pay the gift tax levied by the
What Is a Gift Tax? A gift tax is a federal tax paid by an individual who transfers something of value to another individual without receiving something of similar value in return. Gifts can be anything of significant value, such as large sums of money or real estate, and the tax can be imposed even
What Is a Gig Economy? A gig economy is a labor market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees. Gig workers gain flexibility and independence but little or no job security. Many employers save money by avoiding paying benefits such as health coverage
What Is a Gilt Fund? Gilt funds are a type of British investment fund that invests in gilt securities. Gilts are the equivalent of U.S. Treasury securities in their respective countries, and originated in Great Britain where gilt funds are primarily utilized today. Key Takeaways Gilt funds are pooled investment vehicles that hold British government bonds.Similar to U.S.
