Transfer in contemplation of death refers to the act of giving away property by a person who believes they are nearing death or suffering from a terminal illness. This type of transfer is often temporary, as the giver can cancel it if they recover or if their condition improves. A common example of this is a "gift causa mortis," which is a gift made in anticipation of imminent death.
This term is primarily used in estate planning and probate law. It is relevant in situations where individuals wish to transfer assets to beneficiaries while still alive, under the belief that they may not survive for much longer. Understanding this concept can help individuals manage their estate effectively and ensure their wishes are honored. Users can utilize legal templates from US Legal Forms to create the necessary documentation for such transfers.
Here are a couple of examples of abatement:
Example 1: A person diagnosed with a terminal illness decides to transfer their property to a family member, believing they have only a few months to live. If they later recover, they can cancel this transfer.
Example 2: A senior citizen, after a serious health scare, gifts their car to a friend in contemplation of death. If they regain their health, they may choose to reclaim the car. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| California | Allows for verbal gifts if witnessed, but documentation is recommended. |
| New York | Requires written documentation for gifts causa mortis to be enforceable. |
| Texas | Recognizes oral gifts but emphasizes the need for clear intent and witness corroboration. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Gift causa mortis | A gift made in anticipation of death. | This is a specific type of transfer in contemplation of death. |
| Inter vivos gift | A gift made during the giver's lifetime. | Unlike transfers in contemplation of death, these are not based on the belief of imminent death. |
If you believe you may need to make a transfer in contemplation of death, consider the following steps:
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A gift causa mortis is a specific type of transfer made when someone believes they are about to die, which can be revoked if they recover.