A Net Gift Occurs When a Donor Makes a Gift

question 71

True/False

A net gift occurs when a donor makes a gift subject to the agreement that the recipient agrees to pay the gift tax.

---

Definitions:

Verbal Agreement

An agreement made through spoken words rather than in writing, yet it is legally binding in many cases.

Consumer Protection Act

Legislation designed to safeguard the rights and interests of consumers by ensuring fair trade and accurate information in the marketplace.

Contract Enforcement

The judicial procedure of verifying that the conditions of an agreement are fulfilled as per the consensus of the parties involved.

Sheltered Workshop

A supervised workplace for people with disabilities, providing specialized employment and job skills training.