When is a gift considered to be made?

A gift is considered to be made when the gift is transferred and accepted. This means that the donor has effectively relinquished control over the gift, and the recipient has accepted it. The transfer of the asset makes it a completed transaction under gift tax laws. Acceptance is crucial because it signifies the recipient’s understanding of and agreement to the terms of the gift.

The act of pledging a gift does not constitute a completed gift, as it implies a promise that has not yet been fulfilled. Public declaration of the gift does not finalize the transaction either, as the legal transfer and acceptance are what solidify the gift's existence for tax purposes. Similarly, while an acknowledgment from the recipient may indicate their awareness and acceptance of the gift, it does not replace the requirement of actual transfer and acceptance. Therefore, the correct answer highlights the key legal aspect of gift transfers that is relevant for tax consideration.