A “gift causa mortis” is a special legal concept where a person transfers property under the immediate expectation of impending death. This transaction is distinct from other types of gifts because it can be revoked if the donor survives.
Understanding Gift Causa Mortis
Definition
A gift causa mortis (Latin for “gift in contemplation of death”) is a conditional transfer of property. The donor (giver) transfers the property to the donee (receiver) because the donor anticipates dying soon. If the donor survives, the gift is automatically revoked.
Legal Elements
To be considered a valid gift causa mortis, several elements must be fulfilled:
- Donative Intent: The donor must intend to make the gift.
- Delivery: The property must be delivered to the donee.
- Anticipation of Death: The transfer must occur because the donor anticipates imminent death from a specific ailment or peril.
- Contingency: The gift is contingent upon the donor’s death from the impending peril.
Comparison with Inter Vivos Gifts
Unlike gifts causa mortis, inter vivos gifts are transfers made while the donor is alive without any condition tied to the donor’s death. Inter vivos gifts cannot be revoked without the agreement of the recipient once completed.
Historical Context
The concept of gift causa mortis can be traced back to ancient Roman law, where it evolved to address situations where individuals wanted to manage their assets as they faced death. Over time, this concept has been integrated into modern property law, with specific regulations varying across jurisdictions.
Application in Modern Law
Gifts causa mortis are particularly relevant in estate planning, where individuals seek to manage their assets in anticipation of death without immediate probate processes. However, because these gifts are revocable and subject to specific conditions, they require meticulous legal handling.
Examples
- Jewelry and Valuables: Commonly, personal items like jewelry are given as gifts causa mortis.
- Monetary Gifts: Cash or financial instruments may be transferred under such terms.
Special Considerations
- Delivery Requirement: The delivery must be complete and unequivocal.
- Revocation Conditions: If the donor recovers, legal mechanisms automatically revoke the gift.
- Creditor Claims: These gifts can sometimes complicate creditor claims and estate settlements.
Related Terms
- Inter Vivos Gift: A gift made during the donor’s lifetime without any condition related to death.
- Testamentary Gift: A gift made through a will, effective upon the donor’s death and requires probate.
- Revocation: The act of reversing a gift or transfer, particularly relevant to gifts causa mortis.
FAQ
Q: Can a gift causa mortis be contested? A: Yes, like other forms of property transfers, it can be contested, particularly if there are disputes over the donor’s intent, delivery, or condition of impending death.
Q: Are there tax implications for gifts causa mortis? A: Yes, such gifts may have tax implications, particularly in terms of estate taxes. Consulting with a tax professional is recommended.
Q: What happens if the donee predeceases the donor? A: Typically, the gift would lapse and not be effective, as the condition (impending death of the donor leading to completion of transfer) would not be met.
References
- Black, H. C. (1990). Black’s Law Dictionary. St. Paul: West Publishing Co.
- Dukeminier, J., Sitkoff, R. H., & Lindgren, J. (2013). Wills, Trusts, and Estates. New York: Wolters Kluwer Law & Business.
- Restatement (Third) of Property (Wills and Other Donative Transfers).
Summary
A gift causa mortis is a unique form of property transfer contingent upon the donor facing imminent death. It is characterized by specific legal requisites, and its validity depends on the actual death of the donor from the anticipated peril. This concept remains an important consideration in legal and estate planning contexts.
