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
- 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.
- 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.
- 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.
Related Terms
- 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
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