A Gift in Contemplation of Death is a legal term referring to a type of gift made by a person who anticipates their imminent death. This concept is particularly significant in the context of estate planning and probate law.
Such gifts, often referred to as "donatio mortis causa," are made with the understanding that the giver’s death is likely to occur shortly after the gift is made. Unlike traditional gifts, which are intended to be permanent, a gift in contemplation of death is conditional upon the death of the donor. If the donor survives, the gift is typically revoked.
For example, if someone is diagnosed with a terminal illness and decides to transfer ownership of a valuable painting to a friend, intending that the transfer take effect only upon their death, this transaction would qualify as a gift in contemplation of death.
In Texas, the legal requirements and implications of such gifts are governed by specific statutes. To be valid, the donor must demonstrate the intent for the gift to take effect upon death, and the gift typically must be delivered to the recipient. Furthermore, this type of gift may have implications for the donor’s estate, particularly concerning how it is valued and treated during probate proceedings.
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