Gift (Schenkung)

A gift (Schenkung) is voluntary transfer of property from one individual to another if both parties are in agreement that the disposition occurs gratuitously (§ 516 BGB). The individual who makes the gift is known as the donor (Schenker), and the individual to whom the gift is made is called the donee (Beschenkter). What constitutes a gift for gift tax purposes is stated in § 7 ErbStG. For more information please see the article Gifts in German Civil Law.