A deathbed gift, also known as a “gift in contemplation of death” or donatio mortis causa, is a type of gift made by an individual who anticipates imminent death. This form of gifting is distinct from testamentary gifts, as it is made with the present intention that the gift will take effect upon the donor’s death.
Legal Definition
Under common law principles, a deathbed gift is a gift made by the donor in anticipation of their impending demise, contingent upon the donor’s actual death. If the donor recovers from the anticipated cause of death, the gift can be revoked.
Elements of a Deathbed Gift
For a gift to be classified legally as a deathbed gift, the following elements typically must be present:
Contemplation of Death
The donor must make the gift with the expectation of death due to a specific illness or peril.
Delivery
The gift must be delivered to the donee. This can be physical delivery or constructive delivery when the physical delivery isn’t feasible.
Acceptance
The recipient (donee) must accept the gift before the donor’s death.
Historical Context
The concept of donatio mortis causa dates back to Roman Law and has evolved across various jurisdictions. Historically, it served as a means to bypass certain inheritance laws or estate taxes.
Examples
- Personal Property: If an individual, on their deathbed, gives their cherished watch to a friend, anticipating they will die soon from their ongoing illness, it is deemed a deathbed gift.
- Bank Accounts: A bed-ridden person handing over the keys to a safety deposit box with explicit instructions that the contents are to be taken upon their death.
Applicability and Comparisons
Comparison with Testamentary Gifts
- Deathbed Gift: Takes effect immediately upon the donor’s death and doesn’t require probate.
- Testamentary Gift: Detailed in a will or testament and often requires probate to be enforced.
Legal Considerations
- Revocability: If the donor survives the anticipated cause of death, the deathbed gift can be revoked.
- Challenge: Such gifts can be contested by heirs, particularly if there is suspicion about the donor’s mental capacity or undue influence.
Related Terms
- Testamentary Gift: A gift made through a will, effective upon the donor’s death.
- Inter Vivos Gift: A gift made during the donor’s lifetime, with no contemplation of death.
Frequently Asked Questions (FAQs)
Q1: Can a deathbed gift be revoked? Yes, if the donor survives the anticipated cause of death, the gift can be revoked.
Q2: Is a deathbed gift subject to estate tax? This depends on the jurisdiction, but generally, deathbed gifts can be subject to estate taxes similar to other transfers.
Q3: What happens if the donee refuses the gift? If the donee refuses the gift, it effectively nullifies the transfer and the asset remains with the donor or the donor’s estate.
References
- McGovern, William M., and Kurtz, Sheldon F. “Wills, Trusts, and Estates.”
- Dukeminier, Jesse, and Sitkoff, Robert H. “Wills, Trusts, and Estates.”
Summary
A deathbed gift, or gift in contemplation of death, is a significant legal concept involving the transfer of assets triggered by the donor’s imminent death. Understanding the nuances of this type of gift, including its revocability, the necessary elements, and differences from testamentary gifts, is crucial for both donors and recipients in estate planning.
By grasping the fundamental idea of deathbed gifts, individuals can make informed decisions, ensuring their assets are distributed according to their wishes while respecting legal boundaries.
