A gift causa mortis is a gift given in anticipation of imminent death, with certain conditions. It is treated as a bequest for tax purposes and is revocable until the donor’s death. Documentation and witnesses are advisable to avoid challenges.
Causa mortis is a legal term that refers to a gift that is given in anticipation of imminent death. There are certain conditions that must be present for a gift to be considered a gift causa mortis. Such gifts, for tax purposes, are treated as bequests, although they are given during life by the donee. People may refer to such gifts as “deathbed gifts,” recognizing the circumstances under which they are usually given.
The first condition that must be met to classify something as a gift causa mortis is that it must be offered when the donor is facing imminent death and is aware of it. So, someone dying of cancer who says “when I die, I want you to have my car” is giving a cause mortis gift. Proximity to death also matters, which means that similar statements by people who are not about to die are not considered valid.
The gift must also be transmitted to the donee, with the understanding that the gift is revocable in nature. In the example above, the donor could tell the donee where the car keys and its title are, with the understanding that if the donor makes an unexpected hoover, the gift must be returned. In other words, a gift causa mortis does not take effect until the donor’s death. Until that time, the donee does not have full title.
There may be instances where transportation is simply not possible. For example, someone might state that they intend for a specific person to receive an item in a vault, but the vault might not be accessible, for whatever reason. In such cases, the donee may present to the executor evidence in support of the causa mortis claim on the donated item, and the executor may determine whether or not the claim is valid. If, for example, the item in question has already been explicitly named in a bequest for someone else, the deathbed wish may not be honored.
When someone receives a gift causa mortis, it is advisable to document this so that the validity of the gift cannot be challenged later. This may include making sure that possession is taken in front of witnesses and that witnesses are also present for the statement that the item was given away. People who are unclear about the tax implications of such gifts should contact an accountant.
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