Gifts

Question 1

Gifts - Definition

Answer 1

The intervivos (between the living), voluntary and

gratuitous transfer of a property interest from the owner

(donor) to another (done) that is irrevocable once

complete.

Question 2

Definition of Intervivos

Answer 2

Latin: Between the living

Property is transferred in between the living people

Question 3

3. Elements of a gift

Answer 3

1. Intent to transfer
2. Delivery of property
3. Acceptance by the donee

Question 4

Gift Element 1. Intent

Answer 4

• 1. Intent: to make a present gift / intent to transfer title

• Can make a present gift of future interest – it is real in the present
• CanNOT make an executory gift to be given sometime in the future or subject to a condition precedent (even if the condition is later fulfilled) e.g. “I will give you a ring next week”

       • E.x. “I will give you a piano/plane when I die”

• Interest = donor retains lifetime ownership over the piano, but presently transfers a remainder in true ownership to donee
• Gift = donor may die in debt and bank may sell the piano

Question 5

Element 2: Delivery

Answer 5

• 2. Delivery: External manifestation of intent

   Purpose: to protect against fraudulent claims

   No power of revocation after delivery

• Even if condition precedent and donee fails to fulfill it
• Exception with engagement rings – most courts today find the gift conditional on marriage occurring and order return of the ring if the engagement falls through regardless of fault

Question 6

Element 2: Delivery

3 Types of Delivery

Answer 6

• Actual – physical transfer of object itself
• Constructive – donor gives donee some tangible item that provides means of accessing control; e.g. donor gives key to a locked box
• Symbolic – where delivery is intended to symbolize the transfer of ownership where manual delivery is impractical; e.g. written deed or signed letter

• Delivery through an agent:

• Valid immediately if an independent agent or agent of the donee
• Valid upon delivery to donee if an agent of the donor

Question 7

Gif Causa Mortis Definition

Answer 7

The death bed gift: Reasonable fear of death from present illness or injury; does not cover premonitions

Valid present intervivos gift made by the owner in contemplation of impending death due to present illness or injury

Question 8

Gift Causa Mortis is revokable in three situations:

Answer 8

1. Donor recovers from the present illness/injury
2. Affirmative act by donor cleary indicating revocation
3. Donee dies before donor

Question 9

Gift Causa Mortis DOES NOT apply to this type of property

Answer 9

Doesnt apply to REAL PROPERTY mother fucker!

Question 10

• Engagement Gifts

Answer 10

are conditional and thereby revocable (to give effect to the intent of parties)

Question 11

• Testamentary Gifts

Answer 11

intended to be effective at owner’s death, must satisfy statute of wills; subject to law of trusts and estates