Under what conditions can a gift be retracted?

A gift can be retracted only under specific conditions, particularly when there are terms outlined that expressly allow for such retraction. In legal and tax contexts, once a gift is given and accepted, it generally cannot be taken back unless there's an agreement or provision that permits the donor to rescind the gift. This might include stipulations made at the time of the gift that state the conditions under which retraction is acceptable.

For instance, if a gift was bestowed with specific conditions—like a trust arrangement or a loan that is structured as a gift—the donor may retain the right to reclaim the gift if those conditions are not met. In contrast, if no such terms exist, once a gift is made and accepted, it is usually considered final.