Chetan Sachdeva, BA.LLB (Hons.), University of Petroleum and Energy Studies
ABSTRACT
Classifying gifts based on their conditions and contingencies can help to better understand the terms and expectations of the gift-giving process. Conditional gifts are gifts that come with certain conditions attached to them, such as usage or behaviour requirements. For example, a gift of money to a child may be given with the condition that it is used for educational purposes only. Contingent gifts are gifts that are given with the understanding that they will only be received if certain conditions are met, such as completing a certain task or reaching a certain milestone. For example, a gift of property may be given to a family member with the understanding that it will only be received if the family member graduates from college. Future gifts are gifts that are given with the understanding that they will be received at a future date, such as a trust fund or inheritance. For example, a parent may set up a trust fund for their child that will be accessible when the child turns 21 years old. Understanding the distinctions between these types of gifts can help to ensure that both the giver and the receiver are on the same page about the gift's intended use and accessibility. It helps to avoid confusion and uncertainty about the ownership of certain assets in a family. Classification of gifts can also help determine the tax implications of certain assets, especially if they are being passed on to a family member or other recipient.
Keywords: Certain task, Gift, Classification, Trust or Fund, Property and Future Dates.
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