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is made. The mere expectation that something will someday be given is not legally
adequate to create a gift.

Acceptance The fmal requirement for a valid gift is acceptance, which means that the
donee unconditionally agrees to take the gift. It is necessary for the donee to agree at the

same time the delivery is made. The gift can, however, be revoked at any time prior to
acceptance.

A court ordinarily makes the assumption that a gift has been accepted if the gift is

beneficial, or unless some event has occurred to indicate that it is not.

Types of Gifts

The two principal categories of gifts are inter vivos gifts and causa mortis gifts.

Inter vivos gifts Inter vivos is Latin for "between the living" or "from one living person

to another. 11 A gift inter vivos is one that is perfected and takes effect during the lifetime
of the donor and donee and that is irrevocable when made. It is a voluntary transfer of
property, at no cost to the donee, during the normal course of the donor's life.

A gift inter vivos differs from a sale, a loan, or barter since something is given in
exchange for the benefit in each of such transfers. Whether the value given is a money
price, a percentage interest or an equivalent item of property, or a promise to repay, the
element of exchange makes such transfers something other than a gift.

There are a number of special types of inter vivos gifts. Forgiveness of a debt is a gift of
the amount of money owed, and delivery can be accomplished by destroying the
promissory note signed by the debtor and handing it over to him or her. A share of stock

in a corporation may ordinarily be given to someone else by having ownership
transferred to the person on the books of the corporation or by having a new stock
certificate issued in the person's name. A life insurance policy can generally be given to
someone by delivering the policy, but it is more expedient to express in writing that all

interest in the policy is assigned, or transferred, to the donee and to notify the insurance
company to that effect. Certain states require these formalities since insurance is strictly
regulated by state law. Gifts of land can only be made by written transfer.

A donor can limit an inter vivos gift in certain ways. For example, he or she might give

someone a life estate in his or her property. When the donee dies, the property reverts to
the donor. A donor cannot place other restrictions on a gift if the restrictions would

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