What’s the difference between a revocable and irrevocable gift? 

A charitable gift that can be taken back before it is completed is said to be revocable. A will is a good example of a revocable gift, because a person who intends to make a gift through his or her will can always revoke (change it) before death.  Once the person dies, however, the gift becomes irreversible and thus irrevocable (cannot be changed). 

Another example of a revocable gift would be naming Jones-Harrison as a contingency beneficiary on a life-insurance policy. This is because as long as a donor can change his or her mind and alter the expected gift recipient, the gift is said to be revocable.

 An irrevocable gift, then, is one that cannot be changed. The IRS only gives charitable tax deductions for irrevocable gifts because these gifts cannot be undone. Irrevocable gifts are not always wise arrangements for donors with meager assets, however. For example, a person with limited resources could suffer a health emergency and need money to cover expenses. If those needed assets are locked away in an irrevocable charitable trust or gift annuity, it could be disastrous.

 The important thing in making any planned gift to Jones-Harrison – whether revocable or irrevocable – is to think through the various options and possible unexpected events. This is one reason we recommend that you follow the advice of your lawyer or other professional advisor.

 If you’re curious about planned giving and would like more information, please contact Rosie Viaz, director of development, at (612) 925-7271; or you can e-mail her at: rviaz@jones-harrison.org.