WHAT IS A GIFT?
A gift is an irrevocable transfer of an asset without consideration from one person to another. A gift may be of tangible assets such as real estate, jewelry and physical objects or of intangible assets such as shares of stock, investment accounts or even insurance policies. Of course cash is great.
WHAT DO YOU MEAN BY IRREVOCABLE?
Irrevocable means that the gift is complete and you will not get it back. That sounds simple, but there have been many parents that thought that what they gave could still be theirs when they wanted it back. It is important to understand that it is no longer yours and if your child chooses to misspend your gift there is very little you can do except never give again. It is a serious decision which should be carefully thought out with full knowledge and understanding that you will never have access to that property again.