A gift given during the life of the grantor. Following a gift inter vivos, the grantor no longer has any rights to the property, and can not get it back without the permission of the party it was gifted to.

This type of gift has two major benefits. The first is that since the gift was given prior to death, it is not considered part of the estate and is therefore not subject to probate taxes. Also, if given as a donation to a charitable foundation, the gifter can use the value amount as a tax credit on his/her tax return.