Gifts are transfers of property from one individual or entity to another individual or entity that is made for personal reasons and not business reasons. What is given as a gift should be transferred voluntarily without any type of compensation. The person who gives the gift, called the donor, should intend to make the transfer a permanent one.
The laws that govern gifts will often include at least three general areas, including tax law, property law, and estate law. This can include areas of law such as wills, estates, and trusts.
For the purposes of gift tax, a court will review whether the gift is not attached to any interest in any type of moral or legal obligation. In order for something to be considered a gift under property law, the transfer should be made without any type of expectation from the donor or without the donor benefiting from the exchange at the time it is made or in the future.
In order to determine whether a transfer fits under the legal definition of a gift, a court will consider the donor’s intent. This often includes whether the gift was from a disinterested and detached generosity that comes from the donor’s charity, admiration, respect, and other similar sentiments.
An example of an exchange that would not be considered a gift would be if one person said, “I will give you a new watch if you will paint my home.” This is not a gift, but instead, a payment for services rendered.
In this situation, the watch would be classified as taxable income for the person who received it. This is the case because the watch was used as payment for painting a home and was not a gift that was transferred.
If someone has any questions about what is considered a gift in Pennsylvania or how to make sure a transfer is made as a gift, it is important to schedule a legal consultation in Pennsylvania.
In Pennsylvania, How Can I Prove the Elements of a Gift?
Sometimes, it can be challenging to prove the elements of proof for a gift, which can be a contentious issue between individuals involved in a transaction. The best way that someone can show that a transfer qualifies as a gift is by using evidence of the donor’s intent. As noted above, the donor has to intend to make the transfer permanently and without expecting anything in return.
When someone wishes to show they received something as a gift, it is helpful to have evidence of both the intent of the donor and the transfer of ownership. In some situations, it may not be possible to prove that property given qualifies as a gift under tax laws.
In these cases, someone may have to pay federal and state income tax on the fair market value of the gift. If a transfer is used as a loan, it would not be considered income. Disputes about the nature of transfers can be avoided by taking the following steps:
- Make intent clear at the time of transfer: In some situations, donors may make transfers before they determine whether or not something is a loan or a gift. It can be very helpful to wait to make a transfer until the donor’s intent is clear and it can be documented.
- Document the nature of the transfer: The donor and gift recipient can draft a statement together that outlines the nature of the gift transfer. This document can provide a description and even photographs of the property, as well as the intention of the donor.
- Have witnesses: It can also be helpful to have a witness to the transfer document signing. For even more protection, the parties can have the document notarized at the time they sign.
For example, someone may want to show that their transfer of a financial amount is a gift. In this situation, they can make a written document that outlines their intent to permanently give it to the recipient and not receive anything for it. If, instead, the transfer is actually a loan, the document can also include that information.
If the property being given is a home, the donor can sign a property deed transferring the property to its recipient. That deed should then be filed at the correct government office in the county where the property is located.
This deed would indicate clear evidence of the transfer of ownership. It serves as a document proving the recipient holds title to the home because the donor gave it to them. This would be similar to a vehicle, where the transfer of title would also be evidence of the gift.
Additionally, if there are written records or communications, such as emails, between the recipient and the donor that discuss the transfer being a gift, it could be used as evidence of their intent to donate or provide the recipient with something of value without compensation.
Pennsylvania lawyers can help parties ensure that the intent behind their transfer is clearly established to avoid future disputes or tax issues.
What Can Be Transferred as a Gift in Pennsylvania?
In Pennsylvania, any item of property may be transferred as a gift. Personal property, for example, artwork or jewelry, may be given as a gift.
Real property may also be given as a gift. Another form of property that can be gifted is intellectual property, which may include copyrights, patents, and trademarks. Stocks, bonds, cash, and other financial interests can also be gifts in Pennsylvania.
Can I Legally Take a Gift Back in Pennsylvania?
In order to be considered a gift, the property must be transferred permanently from the donor to the recipient. If the intent is not to give the item permanently, it is considered a loan instead.
It is likely not a good idea to give a gift then try to take it back later. One issue that may arise, especially with property, is interest that an individual may be required to pay state or federal gift tax on the transfer.
Each year, the Internal Revenue Service (IRS) provides an amount that a person can give to a recipient without paying taxes. In 2025, this amount is $19,000. However, it changes every year, so it is important to check before giving a gift.
If a gift exceeds the allowed amount, there can be hefty taxes waged on the gift by the IRS. In addition, the state of Pennsylvania may also collect a gift tax on that same transfer.
It would not be likely that an individual could get a refund on any gift taxes if they decided to reverse, or take back, the gift.
Do I Need a Lawyer for Assistance With a Gift?
Yes, it can be very helpful to have a lawyer’s assistance when giving or receiving gifts in Pennsylvania. A Pennsylvania estate lawyer can help ensure that a transfer can be considered a gift and that all requirements are met for the gift to be valid.
You can use LegalMatch to find an estate lawyer in Pennsylvania who can help you with your gift transfer and provide advice on the tax implications. It is important to consult with an attorney before making the transfer to ensure it is properly completed.
It is free to submit your gift question on the website and will only take you about 15 minutes. Within about a business day, you will start getting messages from LegalMatch member estate lawyers in your area of Pennsylvania who can help.
