Gift vs. Bequest — What's the Difference?
By Urooj Arif & Maham Liaqat — Updated on February 27, 2024
A gift is a voluntary transfer of property or funds without consideration or expectation of return, typically made during giver's lifetime. A bequest is a specific type of gift left in a will, transferred only on the donor's will, intended for indviduals.
Difference Between Gift and Bequest
Table of Contents
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Key Differences
Gifts are characterized by their immediate transfer from one party to another without any requirement for compensation. They are often given to express affection, support, gratitude, or social bonds, and can be made at any time. Bequests are defined by their future-oriented nature, being a transfer of property or money that is specified in a will and only executed upon the donor's will.
The act of giving a gift is universal across cultures, varying widely in form, from tangible objects to money or even services. Bequests are a common way to distribute assets among heirs or donate to charities posthumously, ensuring the donor's wishes are fulfilled after they are no longer alive. They are an essential element of estate planning, allowing individuals to plan for the distribution of their estate.
Both gifts and bequests are acts of giving, the timing and legal frameworks surrounding them differ significantly. Gifts take effect immediately and are governed by laws applicable to living transactions. Bequests, however, are part of the legal process of executing a will, involving probate and potentially more complex legal considerations.
The intention behind gifts and bequests can also vary. Gifts are often given out of immediate feelings or needs, such as celebrating a birthday or offering support in a time of need. Bequests, while they can also reflect deep personal relationships and support, are planned with a longer-term perspective, considering the impact on the recipient's life or an organization's future.
The emotional and social implications of gifts and bequests add another layer of distinction. Gifts play a crucial role in building and reinforcing relationships during the giver's lifetime, often accompanied by personal interactions. Bequests, while also deeply meaningful, are a final testament of the donor's values, wishes, and relationships, realized in their absence.
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Comparison Chart
Definition
A voluntary transfer of property without expectation of return.
A gift specified in a will to be transferred on donors will.
Timing
Given during the giver's lifetime.
Transferred on the giver's will.
Legal Framework
Governed by laws applicable to living transactions.
Part of will execution and subject to probate laws.
Intention
Often expresses affection, support, or gratitude.
Planned for future impact, reflecting long-term wishes.
Emotional/Social Implication
Builds and reinforces relationships during the giver's lifetime.
Reflects the donor's values and relationships, realized posthumously.
Compare with Definitions
Gift
Offering free professional services.
The lawyer offered her legal services as a gift to the nonprofit organization.
Bequest
A sum of money left to a relative in a will.
Her aunt left her a bequest of $10,000.
Gift
A birthday present to a friend.
She gave her best friend a handmade gift to celebrate.
Bequest
Property designated to a friend posthumously.
He included a bequest in his will for his best friend to inherit his cottage.
Gift
A donation to a charity.
He made a generous gift to his favorite charity during their fundraising campaign.
Bequest
A donation to a charity specified in a will.
The museum was the beneficiary of a bequest from the estate of a late art collector.
Gift
A parent giving a car to their child.
For her graduation, they surprised her with the gift of a new car.
Bequest
Shares of a business left to partners.
In her will, she made a bequest of her shares in the business to her co-founders.
Gift
Passing down a family heirloom.
The necklace, a cherished family gift, was passed down through generations.
Bequest
Heirlooms designated to specific family members.
The grandfather clock was a bequest to the eldest grandson.
Gift
A gift or a present is an item given to someone without the expectation of payment or anything in return. An item is not a gift if that item is already owned by the one to whom it is given.
Bequest
A bequest is property given by will. Historically, the term bequest was used for personal property given by will and deviser for real property.
Gift
The act of giving
The painting came into their possession by gift.
Bequest
Something that is bequeathed; a legacy.
Gift
To present something as a gift to
Gifted his niece with a watch.
Bequest
The act of bequeathing or leaving by will.
Gift
Give as a present; make a gift of;
What will you give her for her birthday?
Bequest
That which is left by will; a legacy.
Bequest
The act of bequeathing or leaving by will; as, a bequest of property by A. to B.
Bequest
That which is left by will, esp. personal property; a legacy; also, a gift.
Bequest
To bequeath, or leave as a legacy.
Common Curiosities
Is there a limit on the value of a gift or bequest?
There are no inherent limits, but large gifts and bequests may have tax implications depending on jurisdiction.
How is a bequest executed?
A bequest is executed as part of the probate process, where the will is validated and the estate is distributed according to the deceased's wishes.
What is the primary difference between a gift and a bequest?
A gift is a transfer made during the giver's lifetime without expectation of return, while a bequest is a transfer specified in a will to occur on the giver's will.
Can a bequest be made to anyone or only relatives?
A bequest can be made to anyone, including friends, relatives, or organizations, as specified in the donor's will.
Can a gift given during a lifetime be considered a bequest?
No, a bequest is specifically defined as a transfer of property or assets that occurs on donor's will, as stipulated in a will.
What legal considerations apply to gifts and bequests?
Gifts are subject to laws regarding transfers during one's lifetime, possibly including tax implications. Bequests are governed by will and estate laws, including probate.
Do gifts and bequests have tax implications?
Yes, depending on the jurisdiction and the value of the gift or bequest, there may be tax implications for either the giver or the recipient.
Can a bequest be contested?
Yes, like any part of a will, bequests can be contested in court, typically by heirs or other potential beneficiaries.
Can a gift be conditional?
While gifts are generally given without conditions, it is possible to attach conditions to a gift, though this can complicate its legal and tax implications.
How do cultural factors influence gifts and bequests?
Cultural norms and traditions can significantly impact the giving of gifts and bequests, including what is given, how, and to whom.
How does one make a bequest?
By including specific instructions and details in their will, clearly stating what is to be bequeathed and to whom.
What role do gifts and bequests play in estate planning?
They are key tools in estate planning, allowing individuals to distribute their assets according to their wishes during their lifetime.
How can one ensure their bequest is honored?
By clearly detailing their wishes in a legally valid will and discussing their intentions with the chosen executor.
Is it better to give a gift or leave a bequest?
The choice depends on personal circumstances, intentions, and the needs of the recipient, as well as potential legal and tax considerations.
Can a gift made during a lifetime affect the distribution of a bequest?
Yes, especially if the gift depletes the assets of the estate or is considered an advance on an inheritance.
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Written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
Co-written by
Maham Liaqat
