Will or Gift Agreement — What to Choose and What is the Difference
Gift agreements and wills are commonly used in relationships between close relatives. However, people often confuse these concepts and are unsure which option is better for transferring property.
The Poltava Regional Military Administration clarified that the main difference between these documents lies in when they come into effect.
A gift agreement takes effect immediately after the transaction's execution and registration. The new owner can then dispose of the property at their discretion. Gifting is an irrevocable transaction, and the person who transferred the property loses all rights to it.
A will operates differently, coming into effect only after the testator's death. Until then, the person remains the sole owner of their property and can manage it as they wish.
However, a will does not guarantee that the heir will receive the entire inheritance. Current Ukrainian legislation provides for a mandatory share for certain categories of heirs, even if they are not mentioned in the will.
After concluding a gift agreement, the new owner receives the property without any obligations.
The choice between a will and a gift depends on the specific circumstances. If a person wishes to transfer property but retain control over it until the end of their life, a will should be drawn up. If immediate transfer of ownership is required, a gift agreement is the appropriate choice.
In the case of gifting, it is essential to trust the recipient, as they immediately gain ownership rights to the property, including real estate or a car. Therefore, potential risks should be considered when making a decision.
As the "Judicial-Legal Newspaper" previously reported, the presence of witnesses during the certification of a will is not always mandatory. The testator may invite witnesses at their discretion, but the law specifies situations where their participation is a necessary condition for certifying the document.
The participation of at least two witnesses is mandatory if the testator, due to physical disabilities, cannot read the text of the will independently. Witnesses must also be present if the will is certified not by a notary but by another official or service person in cases provided for by Article 1252 of the Civil Code of Ukraine.
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