To satisfy part or all of a disposition by a lifetime gift to the beneficiary, which requirements must be met?

• A. The gift must be accompanied by a writing; executed contemporaneously with the gift and signed by the decedent or acknowledged by the donee that the donor intended the gift to be an advancement; and the decedent must intend to substitute the gift for the donee's share of the estate.
• B. The gift must be a cash gift only and no later documentation is required.
• C. The gift must be filed with the court.
• D. The gift must be declared as a loan.

Answer: (A)

Advancement against an estate means a lifetime gift to a beneficiary is intended to be counted toward that beneficiary’s share. To satisfy part or all of the disposition, the donor’s intent and the mechanism to show that intent must be clear. The required approach is a writing made at the time of the gift (contemporaneous with the transfer) or an acknowledgment by the donee that the donor intended the gift to be an advancement, and that the decedent intended to substitute the value of the gift for the donee’s share in the estate. If these elements aren’t present, the gift isn’t automatically treated as an advancement for estate purposes.

The other possibilities don’t fit. A cash gift without any accompanying documentation or stated advancement intent doesn’t prove that the donor intended the transfer to count against the beneficiary’s share. Filing with the court isn’t a required step to make something an advancement. Declaring the gift as a loan shows a different characterization of the transfer and does not satisfy the advancement requirement.