Is it a Gift or Satisfaction?

By Matthew P. Stucki

Confusion can arise in cases where an individual that has a Last Will and Testament makes a gift to a named beneficiary and is silent as to the intent of the gift. This confusion stems from the question as to whether the gift to the beneficiary is in addition to what he or she will inherit under the Last Will and Testament, or is the gift to be deducted from what he or she will inherit under the Last Will and Testament.

In Idaho, “property which a testator gave in his lifetime to a person is treated as a satisfaction of a devise to that person in whole or in part, only if the will provides for deduction of the lifetime gift, or the testator declares in a contemporaneous writing that the gift is to be deducted from the devise or is in satisfaction of the devise, or the devisee acknowledges in writing that the gift is in satisfaction.” Idaho Code § 15-2-612.

In other words, if an individual that has a Last Will and Testament wants a lifetime gift to a beneficiary to reduce that beneficiary’s overall inheritance under the Last Will and Testament by the amount of the gift, then it must be stated as such in the Last Will and Testament or in another writing that is written at the same time as the gift.

When making a life time gift to a beneficiary, be sure to specify whether the gift should reduce that beneficiary’s inheritance or be in addition to said inheritance. Such a simple act can save a lot of heartache between your beneficiaries in the end.

If you have any questions regarding gifts made during life or how to reduce potential conflict between your named beneficiaries upon your death, contact our Idaho Estate Planning Team of lawyers.

Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Matthew P. Stucki and the Racine Olson team of Estate Planning attorneys in Pocatello, Idaho Falls, or Boise. You can also email Matthew P. Stucki directly at mps@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you determine how to meet your personal estate planning needs.