Life Income Gift Law and Legal Definition

Life income gift is a gift arrangement in which the donor makes an irrevocable transfer of property to a nonprofit or charity, and at the same time retains an income interest to his/her benefit. The benefit of income will be to the donor and any other beneficiary for life or a specified period of years. If the gift is for a specified period, the remainder will be distributed to the nonprofit or charity after that specified period. Life income gift helps to maintain a continuing source of income and also provide an opportunity to receive tax benefits.