Gift Causa Mortis

Gift Causa Mortis Property Transfer Donor Donee Revocable Gifts Estate Planning Impending Death Legal Terms
Gift causa mortis is a transfer of property made by a person facing impending death to a donee, which becomes effective upon the donor's death but can be revoked if the donor survives.
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Definition

Gift causa mortis refers to a transfer of property by a person who faces impending death. The donee therefore shall become the owner of the property, but on condition that the donor’s failure to die will revoke the gift. This type of gift is generally made in anticipation of imminent death and is conditional on the donor’s death from the anticipated cause.

Examples

  1. Hospital Example: If an individual is terminally ill and believes their death is imminent, they might give a valuable piece of jewelry to a close friend. If the individual survives the terminal illness, the jewelry must be returned.
  2. Dangerous Profession: A miner who faces danger every day might give their family heirloom to their spouse with the belief that they may not return from their next shift. If the miner survives, they can reclaim the heirloom.
  3. Traveler’s Last Wishes: A person who is about to embark on a dangerous journey (like trekking through a perilous mountain) might give their treasured watch to a companion in the belief that they may not survive the trip. If the journey is completed safely, the gift is revoked.

Frequently Asked Questions (FAQs)

What happens if the donor survives the impending death?

If the donor survives the cause of their anticipated death, the gift causa mortis is revoked, and the property must be returned to the donor.

How does gift causa mortis differ from a gift inter vivos?

A gift causa mortis is made in the expectation of imminent death and is revocable if the donor survives. In contrast, a gift inter vivos is a gift made during the giver’s lifetime without any conditions related to the giver’s death.

Can a gift causa mortis be contested?

Yes, similar to other legal transactions, the validity of a gift causa mortis can be contested, especially if there are questions about the donor’s mental capacity at the time of making the gift or the authenticity of the donor’s anticipation of imminent death.

Does gift causa mortis have tax implications?

It can have tax implications, particularly in terms of estate and inheritance tax, depending on the jurisdiction’s specific laws regarding gifts and tax.

  • Inter Vivos Gift: A gift made by a person during their lifetime that is immediately effective and not contingent on the donor’s death.
  • Donor: The person who gives the gift.
  • Donee: The recipient of the gift.
  • Probate: The legal process through which a deceased person’s will is validated, and their estate is administered.
  • Estate Planning: The preparation of tasks to manage an individual’s asset base in the event of their incapacitation or death.

Online References

Suggested Books for Further Studies

  • Wills, Trusts, and Estates by Jesse Dukeminier and Robert H. Sitkoff
  • Estate Planning for Dummies by N. Brian Caverly and Jordan S. Simon
  • The Complete Book of Wills, Estates & Trusts by Alexander A. Bove Jr. Esq.

Fundamentals of Gift Causa Mortis: Estate Planning Basics Quiz

### What is a gift causa mortis? - [ ] A gift made with no conditions attached. - [ ] A gift made conditionally upon the donor's survival. - [x] A gift made in expectation of the donor's imminent death. - [ ] A gift that is irrevocable. > **Explanation:** A gift causa mortis is a gift made in anticipation of the donor's imminent death and will be revoked if the donor survives the specific cause. ### Under what circumstance is a gift causa mortis automatically revoked? - [x] If the donor survives the anticipated cause of death. - [ ] If the donee refuses the gift. - [ ] If the donor makes an inter vivos gift instead. - [ ] If the donor changes their durable power of attorney. > **Explanation:** If the donor survives the anticipated cause of death, the gift causa mortis is revoked because its execution is contingent on the donor's death. ### How does a gift inter vivos differ from a gift causa mortis? - [x] A gift inter vivos is made with no conditions attached to the donor’s death. - [ ] A gift inter vivos can only be given within family. - [ ] A gift inter vivos must be registered with the local authority. - [ ] A gift causa mortis can only be transferred through a will. > **Explanation:** A gift inter vivos is an unconditional gift made during the donor's lifetime, while a gift causa mortis is conditional on the donor's death. ### Which term describes the person who receives a gift causa mortis? - [ ] Donor - [ ] Beneficiary - [ ] Trustee - [x] Donee > **Explanation:** The person who receives the gift is known as the donee, whereas the person giving the gift is the donor. ### Why might someone choose to make a gift causa mortis rather than include the item in a will? - [ ] To avoid probate process. - [x] Because they anticipate they might die soon and want to ensure the donee receives it immediately upon their death. - [ ] Because gifts causa mortis are tax-exempt. - [ ] To avoid legal disputes over the property. > **Explanation:** A gift causa mortis ensures the intended recipient receives the property immediately upon the donor's death without waiting for the probate process. ### Can a gift causa mortis be challenged in court? - [x] Yes, particularly if there are questions about the donor's mental capacity at the time of the gift. - [ ] No, it is considered irrevocable once made. - [ ] Yes, but only within one year of the donor's death. - [ ] No, such challenges are not allowed under any circumstances. > **Explanation:** Gifts causa mortis can be contested, especially if the donor's mental capacity or the circumstances of the gift are in question. ### What happens to the gifted property if the donor recovers from the anticipated cause of death? - [x] The gift is automatically revoked and should be returned to the donor. - [ ] The property is kept by the donee. - [ ] It is decided through the probate court. - [ ] The gift becomes part of the donor’s inter vivos assets. > **Explanation:** If the donor survives the anticipated reason for their imminent death, the conditional gift is revoked and must be returned. ### What legal document might a gift causa mortis circumvent? - [ ] Power of Attorney - [ ] Trust Agreement - [x] Last Will and Testament - [ ] Health Care Directive > **Explanation:** A gift causa mortis can circumvent the Last Will and Testament by providing an immediate transfer of specific property upon death without going through probate. ### In what critical situation is a gift causa mortis typically utilized? - [ ] When settling annual taxes. - [x] During life-threatening situations and anticipation of imminent death. - [ ] When creating a trust fund. - [ ] When drafting a living will. > **Explanation:** A gift causa mortis is typically made when the donor believes they are facing imminent death. ### Who has the responsibility to return the property if a gift causa mortis is revoked? - [ ] Local authorities - [ ] Courts - [x] The donee - [ ] The donor's executor > **Explanation:** If a gift causa mortis is revoked, the donee has the responsibility to return the property to the donor.

Thank you for exploring the concept of gift causa mortis and tackling our quiz questions. Keep enhancing your knowledge of estate planning and legal terms!

Wednesday, August 7, 2024
Gift Deed
Gift Card
Gift Inter Vivos January 1, 1
Gift Deed January 1, 1
Inter Vivos Transfer January 1, 1
Bequest January 1, 1
Date of Gift January 1, 1
Deathbed Gift (Gift in Contemplation of Death) January 1, 1
Donee January 1, 1
Donor January 1, 1
Heirs and Assigns January 1, 1
Incident of Ownership January 1, 1

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