Meaning of Gift

A gift is another way to acquire property and transfer ownership that can be either real or personal property. It is usually voluntary for which no consideration is given. This is what distinguishes a gift from a contract. There are three requirements for a gift to be met: 1) it has to be donative intent on the part of the donor to give the gift; 2) delivery of the gift; and 3) acceptance of the donee to accept the gift. Unless these three requirements have been met, no effective gift has been made. An example would be if your uncle says he will give you a new car for your birthday. This is simply a promise unless the car is delivered and you accept the car as a gift. For the courts to challenge whether an object is a gift is to determine if there was donative intent. The courts will examine the language between the donor and the donee, the relationship between the donor and donee as well as the size of the gift in comparison with the size of all his or her other assets. If the gift is a large portion of his or her assets, the courts look closely at the mental capacity of the donor to make sure fraud or duress was not committed. The delivery should be delivered to the donee, either by a third party of the agent of the donee. If the gift is already in possession of the donee, no delivery has been made. Sometimes an object cannot be physically delivered. This is called constructive delivery. This is when a symbolic delivery is made. This does not prove actual possession of the object, just the right to take possession. It is a general term the law holds equivalent to real delivery. An example would be if a grandparent wishes to gift an heirloom ring but the gift is in the safe deposit box at the bank. The grandparent would give the key to the box to the donee along with authorizing the donee access to the box and its contents. Gifts of intangible objects, like stocks, bonds, and certificates, must also be delivered by means of constructive delivery. The final requirement is simply for the donee to accept the gift. The courts generally assume delivery unless there are certain circumstances that indicate otherwise. There are two types of gifts 1) gifts inter vivos--this is a gift made during a lifetime; and 2) gifts causa mortis--this is a death bed gift made in anticipation of death. A gift causa mortis does not become effective until the donor dies and is revoked should the donor recover. It is also revoked if the donee dies before the donor. It is also should meet the three requirements of a gift--donative intent, delivery, and acceptance. The donor should have a last will and testament so that his or her wishes are carried out as his or her wishes. Having a will drawn out will probably cause less confusion and prevent discrepancies as to whether or not possession of such items, like the heirloom ring mentioned above, are indeed a gift. References South-Western Cengage Learning. (2008-2011). Business Law Today: The Essentials. (9th Ed.). Mason, OH: South-Western Cengage Learning.