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Simple English definitions for legal terms
donative intent
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A quick definition of donative intent:
Donative intent: When someone gives a gift on purpose, it's called donative intent. This means they wanted to give the gift, not that they were forced or made a mistake. If someone gives a gift with donative intent, it usually means there's no contract involved. For example, if someone opens a bank account for their spouse's convenience, it's not a gift because they didn't have donative intent. But if someone creates a joint account with someone else, it's usually assumed that they had donative intent.
A more thorough explanation:
Definition: Donative intent refers to the conscious desire to make a gift, as opposed to giving something as a gift by mistake or under pressure. When a donor makes a gift with donative intent, it may preclude the creation of a contractual relationship.
For example, in Mortellaro v. Mortellaro, the court stated that the "key elements to finding a gift [and therefore not a contractual relationship are] donative intent, delivery . . . and acceptance." In this case, a husband opened a bank account in his wife's name for convenience, but the court held that there was no donative intent since the donor's motivation was convenience.
On the other hand, certain transfers of property or relationships may establish a presumption of donative intent. For instance, in Murgic v. Granite City Trust & Sav. Bank, the Illinois Supreme Court held that the creation of a joint account pursuant to the state statute ruling the creation of such accounts donative in nature establishes a presumption of donative intent.
These examples illustrate that donative intent is an essential element in determining whether a gift has been made or whether a contractual relationship has been established. If the donor's motivation is not to make a gift, then there is no donative intent, and the transfer of property may be considered a contractual relationship.