If I give you a thousand dollars and say, “here is a thousand dollars, it is a gift,” it is a gift and, by definition, does not have to be repaid. If I give you a thousand dollars and say, “here is a thousand dollars, it is a loan,” it is a loan and, by law, it is payable on demand. However, if I give you a thousand dollars and say, “here is a gift of a thousand dollars, you must repay it on demand,” the operative word is not “gift,” it is “repay” because my intent is to make a loan. Conversely, if I give you a thousand dollars and say, “here is a loan of a thousand dollars, you can keep it,” the operative word is not “loan,” it is “keep,” because my intent is to make a gift.1
Employing language that furthers a client’s goals is a skill that, if mastered, affords the practitioner peace of mind and the client a tactical advantage in conducting its affairs. Conversely, carelessness in this regard could cause the practitioner embarrassment and the client unnecessary expense.
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