Legal Definitions - gift

In property law, a gift refers to a voluntary transfer of property or a benefit from one person (the "donor") to another (the "recipient") without any expectation of payment or exchange. For a transfer to be legally recognized as a valid gift, three essential elements must be present:

• Intent to Give: The donor must clearly intend to make a gift to the recipient. This means they genuinely want to give the item or benefit without expecting anything in return.
• Delivery: The gift must be physically or constructively delivered to the recipient. For physical items, this often means handing it over. For intangible things like money in a bank account or property, it might involve transferring titles, deeds, or providing access.
• Acceptance: The recipient must accept the gift. This usually happens automatically when someone takes possession of an item or acknowledges receipt of a benefit, but a recipient can refuse a gift.

Here are some examples illustrating how the legal concept of a gift applies:

• Example 1: A Birthday Present

  Imagine Sarah gives her friend, David, a new book for his birthday. She wraps it, hands it to him, and says, "Happy birthday, this is for you!" David smiles, thanks her, and takes the book home to read.

  • Intent to Give: Sarah clearly intended to give the book to David as a birthday present, expecting nothing in return.
  • Delivery: Sarah physically handed the wrapped book to David.
  • Acceptance: David took the book, thanked her, and later read it, demonstrating his acceptance.

  Because all three elements are met, this is a legally valid gift.

• Example 2: Financial Contribution to a Down Payment

  A parent, Mr. Henderson, decides to help his daughter, Emily, purchase her first home. He writes a check for $20,000, explicitly stating in a letter that the money is a gift to help with her down payment, with no expectation of repayment. Emily deposits the check into her bank account and uses the funds for the home purchase.

  • Intent to Give: Mr. Henderson's letter clearly articulated his intention to provide the $20,000 as a gift, not a loan.
  • Delivery: The check was written, handed to Emily, and subsequently deposited into her account, transferring the funds.
  • Acceptance: Emily deposited the check and used the money as intended, signifying her acceptance of the gift.

  This financial transfer is a legally recognized gift, which can be important for tax purposes or if the nature of the funds is ever questioned.

• Example 3: A Promise of a Future Gift

  During a casual conversation, Aunt Carol tells her nephew, Mark, "When I get a new car next year, you can have my current one." Mark is excited and tells his friends he's getting a free car. However, a year later, Aunt Carol sells her old car to a dealership instead.

  • Intent to Give: While Aunt Carol expressed a future intention, it might not have been a firm, present intent to immediately transfer ownership. It was more of a promise.
  • Delivery: No delivery occurred. Aunt Carol never handed over the keys, title, or possession of the car to Mark.
  • Acceptance: Mark's excitement showed a willingness to accept, but without delivery, his acceptance alone is insufficient to complete the gift.

  Because the crucial element of delivery was missing (and potentially a firm present intent), this was not a legally binding gift, but rather an unfulfilled promise.