Trust and Estates Newsletters
This article discusses the legal requirements for an ordinary gift: donor competence, donor intent, donor delivery, donee acceptance, and appropriate documentation, if necessary.
An intentional transfer of property made from the generosity of the transferor is known as a gift. The person who makes a gift is known as the donor. The person who receives a gift is known as the donee.
When a trustee receives a distribution, it can be difficult to determine whether he should pay it to the beneficiary or add it to the "corpus" (the trust property).
A trust has five main elements. First, a settlor transfers some or all of his or her property. Second, the property transferred by the settlor is designated trust property. Third, the trust property designated by the settlor is transferred with the settlor's intent that it be managed by another. Fourth, the trust property designated by the settlor is transferred for management by a trustee. Fifth, the trust property designated by the settlor is managed by a trustee for the benefit of a beneficiary.