Gifts--Property

"Inter Vivos"

"During Life"

Characteristics of an Inter Vivos Gift

((ordinary type of gift)) (1) a voluntary transfer from one person to another that is immediately effective (2) A gift intended to take effect in the future (a testamentary gift) is not valid unless the statute of wills is met

Elements of a Causa Mortis Gift

(1) Donative Intent (2) Delivery (3) Acceptance -THESE 3 ARE THE SAME AS INTER VIVOS - (4) donor's anticipation of imminent death and donor's ACTUAL DEATH rom the SAME illness or peril in which he/she ANTICIPATED

Three elements of an Inter Vivos Gift

(1) Donative Intent (2)Delivery (3) Acceptance (Intent and Delivery are more important)

Acceptance

(1) Donee must accept the property (2)Acceptance is presumed if the item benefits the donee of if its of value (THE PERSON CLAIMING TO BE THE DONEE HAS THE BURDEN OF PROVING EACH ELEMENT)

A gift Causa Mortis is revocable:

(1) any time before the donor's death, or (2) If the donor does NOT die from the impending peril or (3) If the donor recovers from the illness

What is the key difference between an inter vivos gift and a testamentary gift?

-An inter vivos gift takes effect immediately - A gift made under a valid will takes effect in the future

Donative Intent

Donor must intend to make an IMMEDIATE transfer of the property

Title vests:

IMMEDIATELY

Present transfer of a FUTURE interest is:

IRREVOCABLE

Court views on engagement ring cases

Majority Rule: an engagement ring is a conditional gift that is not completed until the wedding occurs Two Minority Viewpoints: (a) some jurisdictions follow that the party at fault for the cancellation of wedding keeps the ring (b) some jurisdictions follow that it constitutes an irrevocable inter vivos gift

Does the fact that acceptance is presumed mean the element of acceptance will always be met?

No. It is possible for a donee to reject the gift. (ex. an expensive car that the donee cannot afford to maintain)

Conditional Gift

Not recognized in all states. A gift that is conditioned on the occurrence of an action or event (engagement ring).

Delivery

Property must be delivered to the donee such that the donor parts with DOMINION AND CONTROL of the item

Gruen v. Gruen

The donor MUST intend to immediately transfer SOME present interest to the donee -the correct test is WHETHER THE DONOR INTENDED TO TRANSFER SOME PROPERTY INTEREST OR WHETHER HE INTENDED THE GIFT TO HAVE NO EFFECT UNTIL AFTER THE DONOR'S DEATH

Donor

The person making the gift

Donee

The person receiving the gift

Testamentary Gift

Transfer of proper made in the future when the donor dies, usually pursuant to a will

Causa Mortis Gift

Transfer of property rights made by a living person in contemplation or anticipation of imminent death

Constructive

When the donor physically transfers possession of an object that provides ACCESS to the gifted item (allowed only if actual delivery is impossible or impractical)

Symbolic

When the donor physically transfers possession of an object that represents of symbolizes the gifted item (allowed ONLY if actual delivery is impossible) EX. letters in the gruen v gruen case

Actual/Manual Delivery

When the donor physically transfers possession of the gifted item to the donee- IF PRACTICAL- actual delivery is REQUIRED

Gift Causa Mortis

a gift of personal property made by a living person in contemplation of his/her imminent death

When is acceptance "presumed"

if the gift benefits the donee or is of value

Modern view on gift causa mortis via suicide

modern view is that the gift WILL be upheld if the gift is made in contemplation of suicide and the donor completes the act

Gift

the immediate transfer of property rights from the donor to the donee without payment or other consideration

Gift v. Contract

A gift is a transfer made without consideration (a non-contractual gratuitous offer)

"Wrench of Delivery"

Delivery is always required for an inter vivos gift!!!!