In Louisiana, a gift is generally defined as a voluntary transfer of property or value from one person to another without receiving something of equal value in return. Although the Louisiana Civil Code does not provide a comprehensive definition of “gift,” the Code recognizes the concept through the legal framework of donations.
According to Louisiana Civil Code Article 1468, a donation made “inter vivos” (between living persons) is “a contract by which a donor gratuitously divests himself at present and irrevocably of the thing given in favor of a donee who accepts it.”
The legal elements of proof for a gift for a valid gift in Louisiana include that there must be a donative intent, delivery, and acceptance. The donor must intend to make a gift, must deliver the item or property to the donee, and the donee must accept it.
For immovable property, such as land or buildings, the donation must be made by authentic act. In other words, it must be executed before a notary and two witnesses, as required by Louisiana Civil Code Article 1833. For movable property, such as clothing, delivery and acceptance may suffice, though formalities may still apply depending on the value and context.
Additionally, Louisiana law also imposes restrictions on gifts in certain contexts, particularly involving public servants. Under Louisiana Statutes Annotated Section 42:1115, public officials are prohibited from accepting gifts of economic value from individuals who have or seek a business relationship with their agency or who are attempting to influence legislation. These statutes are all part of Louisiana’s Code of Governmental Ethics and are designed to prevent conflicts of interest and maintain public trust.
If you have any questions regarding what qualifies as a gift, it is recommended to set up a legal consultation in Louisiana with Louisiana lawyers knowledgeable in property law, gift tax, and tax law.
In Louisiana, How Can I Prove the Elements of a Gift?
In order to prove the existence of a valid gift under Louisiana law, the party asserting that a gift was made or received must first establish that the donor had the intent to make a gratuitous and irrevocable transfer of ownership. This intent must be clear and unmistakable, and courts often look for evidence such as written documentation, witness testimony, or conduct that demonstrates the donor’s desire to relinquish control permanently.
As noted above, Louisiana Civil Code Article 1468 defines a donation inter vivos as a contract where the donor divests themselves of the thing given in favor of the donee, who must accept it. Therefore, both the donor’s intent and the donee’s acceptance are critical to proving the gift.
Additionally, delivery of the gift must be completed. This means that the donor must physically or constructively transfer the item to the donee. For movable property, actual delivery or symbolic delivery, such as handing over keys, documents, or the property itself may suffice. For immovable property, Louisiana law requires an authentic act executed before a notary and two witnesses. Acceptance by the donee can be expressed or implied, but it must be proven to finalize the gift. If any of these elements—intent, delivery, or acceptance—are missing or unclear, the alleged gift may be deemed invalid.
The following is a list of the legal elements that must be proved to prove a gift:
- Donative Intent: The donor must intend to make a gratuitous and irrevocable transfer
- Delivery: The donor must deliver the property to the donee, either physically or symbolically
- Acceptance: The donee must accept the gift, either expressly or implicitly
- Compliance with Formalities: For immovable property, the donation must be made by authentic act before a notary and witnesses
What Can Be Transferred as a Gift in Louisiana?
In Louisiana, individuals can give away a wide range of assets as gifts, including physical items, such as money, cars, and real estate, as well as intangible property such as financial investments or intellectual property. The essential factor is that the donor willingly transfers ownership without expecting anything in return, and the recipient agrees to accept it. When it comes to real estate or other immovable property, state law requires the transaction to be formalized through a notarized document signed in the presence of two witnesses.
Although Louisiana does not impose its own gift tax, federal law governs how gifts are taxed. The Internal Revenue Service (“IRS”) allows individuals to give up to $19,000 per person each year without triggering federal gift tax reporting. Gifts that exceed this annual limit count toward the donor’s lifetime exemption, which currently stands at $13.99 million. This exemption is a key tool in estate law planning, helping individuals reduce the taxable value of their estate over time.
Recipients of gifts generally do not have to pay income tax on what they receive, as the IRS does not treat gifts as taxable income. However, donors may be required to file IRS Form 709 if their gifts exceed the annual exclusion amount. By strategically giving away assets during their lifetime, donors can reduce future estate tax obligations and manage their financial legacy more effectively.
Can I Legally Take a Gift Back in Louisiana?
In Louisiana, once a gift is completed, meaning the donor has transferred ownership and the donee has accepted it, it is generally considered irrevocable. This principle applies to donations inter vivos, which are gifts made during the donor’s lifetime.
However, Louisiana law provides a unique exception: a donor may revoke a gift on the grounds of ingratitude. According to Louisiana Civil Code Article 1557, a donation may be revoked if the donee has attempted to harm the donor or has committed acts of cruel treatment or grievous injury against them.
In order to pursue revocation for ingratitude, the donor must file a legal action within one year of the alleged offense or from the time they became aware of it. If the donor has passed away, their successors may also bring the claim within the same timeframe under Article 1558.
Courts have interpreted “grievous injury” broadly, including acts such as slander, physical abuse, or even legal actions taken by the donee against the donor. The burden of proof lies with the donor or their heirs to demonstrate that the donee’s behavior meets the legal threshold for ingratitude.
Outside of this narrow exception, gifts cannot be reclaimed simply because the donor regrets the decision or the relationship deteriorates. Once the legal elements of a valid gift are satisfied, the transfer is binding. Louisiana’s approach reflects a strong commitment to honoring completed donations unless serious misconduct justifies reversal.
Do I Need a Lawyer for Assistance With a Gift?
Although you are not legally required to hire a lawyer to make or receive a gift in Louisiana, having legal guidance can be extremely beneficial when making or receiving a gift, especially when dealing with high-value assets, such as real estate.
An experienced Louisiana estate lawyer can help ensure that the gift complies with Louisiana’s civil law requirements, is properly documented, and does not unintentionally trigger tax consequences or future disputes. This is particularly important when gifting immovable property, which must be executed by authentic act before a notary and witnesses.
If you’re unsure about the legal or tax implications of a gift, or if you’re planning to use gifting as part of your estate strategy, consulting with a qualified attorney is a smart move. LegalMatch can assist you in locating an experienced estate lawyer near you who is experienced in handling issues surrounding gifts, ensuring your intentions are carried out smoothly. Finally, if there is an issue requiring court intervention, they can also represent you in court, as needed.
