Question

NO HANDWRITTEN ANSWERS PLEASE

What are the two types of gifts and why are gifts and grants desirable by entrepreneurs?

Answer 1

gift is a voluntary transfer of property or interest in property from one individual to another individual made gratuitously to the recepient, The individual who makes the gift is known as the donor, and theindividual to whom the gift is made is called the donee.

In case of a gratuitous transfer of property is to be effective at some future date, it constitutes a mere promise to make a gift that is unenforceable due to lack of consideration. A present gift of a futureinterest is, however, valid.yes now it is valid

There are two types of gifts,

oneis,Inter vivos gifts Inter vivos is Latin for "between the living" or "from one living person to another." Agift inter vivos is one that is perfected and takes effect during the lifetime of the donor and doneeand 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 thebenefit in each of such transfers. Whether the value given is a money price, a percentage interest oran equivalent item of property, or a promise to repay, the element of exchange makes such transferssomething other than a gift.

There are a number of special types of inter vivos gifts. Forgiveness of a debt is a gift of the amountof money owed, and delivery can be accomplished by destroying the promissory note signed by thedebtor and handing it over to him or her. A share of stock in a corporation may ordinarily be given tosomeone else by having ownership transferred to the person on the books of the corporation or byhaving a new stock certificate issued in the person's name. A life insurance policy can generally begiven to someone by delivering the policy, but it is more expedient to express in writing that allinterest in the policy is assigned, or transferred, to the donee and to notify the insurance company tothat effect. Certain states require these formalities since insurance is strictly regulated by state law.Gifts of land can only be made by written transfer.

Causa Mortis Gifts A gift causa mortis (Latin for "in contemplation of approaching death") is onethat is made in anticipation of imminent death. This type of gift takes effect upon the death of thedonor from the expected disease or illness. In the event that the donor recovers from the peril, thegift is automatically revoked. Gifts causa mortis only apply to personal property.

A donor who is approaching death might make a gift by putting his or her intention in writing. Thisprocedure is likely to be followed, when, for example, the donee is in another state, and personaldelivery is thereby impractical. The delivery requirement is frequently relaxed when a causa mortisgift is involved, since a donor is less likely to be able to make an actual delivery as his or her deathapproaches. A symbolic delivery is frequently sufficient to show that a gift was made, provided atleast some effort to make a delivery is exercised.