There are various strategies which involve gifting. In brief gifting can be beneficial for Asset protection Tax advantages estate planning Once a gift is made it means the asset given is no longer an asset of the giver. So if Borat gives $100,000 to a spouse or a discretionary trust and Borat later becomes bankrupt the $100,000 is no longer his. Keep in mind there are various ways a gift can be clawed back A tax advantage can be gained in several ways. A person gifts $100,000 to their spouse who invests the money. The receiver of the gift would be the one investing and earning the income so he or she would be taxed on that income. Estate Planning involving a gift can make sure an asset goes to the right person. An example is someone who knows, or thinks, that their will is going to be challenged so they give away their assets prior to death. (note under NSW law assets given away within 3 years of death can be attacked). There are other aspects too such as emotional enjoyment by both giver and receiver (stop thinking about sex!) And naturally there are many issues to consider legally. The recipient could lose the money, you could lose control of a trust, or you may want the money back.