Legal Definitions - completed gift

A completed gift refers to a transfer of property from one person (the donor) to another (the donee) that is legally final and irrevocable. For a gift to be considered "completed" under the law, three essential conditions must be met:

• Donative Intent: The donor must have a present and clear intention to permanently and irrevocably transfer ownership of the property to the donee. They must intend to give up all control over the property immediately.
• Delivery: The property must be actually or constructively delivered to the donee. Actual delivery means physically handing over the item. Constructive delivery means doing something that gives the donee control over the property, even if they don't physically possess it (e.g., handing over car keys, a deed to a house, or access to an account).
• Acceptance: The donee must accept the gift. Acceptance is generally presumed if the gift is beneficial, but it can be explicitly refused.

Once these three elements are present, the gift is "completed," meaning the donor can no longer legally take it back, and the donee legally owns the property.

Examples of a Completed Gift:

• Example 1 (Tangible Item): A grandmother decides to give her grandson her antique pocket watch. She takes the watch from her jewelry box, hands it directly to him, and says, "This watch is yours now, to keep and cherish." The grandson smiles, thanks her, and puts the watch on his wrist.

  Explanation: This is a completed gift because the grandmother had donative intent (expressed by her words "yours now"), performed delivery (physically handed the watch to him), and the grandson demonstrated acceptance (by thanking her and wearing it).

• Example 2 (Financial Transfer): A couple wants to help their niece pay for her college tuition. They log into their online banking portal and initiate an electronic transfer of $5,000 from their savings account directly into their niece's checking account, adding a note in the transfer description: "Gift for college tuition." The niece receives the notification of the deposit and uses the funds for her tuition expenses.

  Explanation: This constitutes a completed gift. The couple showed clear donative intent through the transfer and the descriptive note. Delivery occurred when the funds were electronically transferred into the niece's account, giving her full control. The niece's subsequent use of the funds demonstrates her acceptance.

• Example 3 (Real Estate through Deed): An uncle decides to give his nephew a vacant plot of land he owns. He consults with an attorney, signs a legally valid deed transferring ownership of the land to his nephew, and ensures the deed is properly recorded with the county's land records office. He then mails the original recorded deed to his nephew, who receives it and understands he is now the legal owner of the property.

  Explanation: This is a completed gift. The uncle's actions of signing and recording the deed clearly establish his donative intent. Delivery is achieved through the recording of the deed and mailing it to the nephew, which legally transfers control and title. The nephew's receipt and understanding of his new ownership signify his acceptance.