Gifting

The process of voluntarily transferring an asset without financial compensation, usually referenced in terms of charitable gifts. In order to make a gift, the person must be of sound mind, have ownership of the item prior to making the offer, offer the item to the recipient (who must also be of sound mind) and the recipient must then accept the item. Only after all of these steps have been satisfied is a gift considered to be made, which can be very important in planning charitable gifts.