Legal Definitions - gift causa mortis

A giftcausa mortis (pronounced KOW-sah MOR-tis) is a legal term for a gift made by someone who believes they are facing imminent death. Unlike a regular gift given during one's lifetime (known as an inter vivos gift), a gift causa mortis is conditional and only becomes final if the donor actually dies from the specific illness or peril they were contemplating when making the gift.

Key characteristics of a gift causa mortis include:

• It must be made in contemplation of the donor's present, imminent death from a specific illness or peril.
• The donor must actually die from that illness or peril, without recovering.
• There must be a clear delivery of the gift to the recipient.
• The gift is revocable: the donor can take it back at any time before their death, or if they recover from the illness or survive the peril.
• It typically involves personal property (like jewelry, cash, or a car), not real estate.
• Upon the donor's death, if the conditions are met, the gift is treated as part of their estate for tax purposes, rather than a simple gift.

This type of gift often serves as a way for individuals to quickly transfer property when they are in a critical situation and may not have time to update their will.

Here are some examples:

• Example 1: Pre-Surgery Gift
  Eleanor, an elderly woman, is about to undergo a high-risk heart surgery. Before being wheeled into the operating room, she hands her beloved antique sapphire necklace to her niece, Sarah, saying, "Sarah, if I don't make it through this surgery, I want you to have this. It's been in our family for generations." Eleanor unfortunately passes away during the surgery.

  Explanation: This is a gift causa mortis because Eleanor made the gift in contemplation of her imminent death from a specific peril (the surgery). She delivered the personal property (the necklace) to Sarah, and she subsequently died from that peril without recovering. Had Eleanor survived the surgery, she would have had the right to ask for the necklace back.

• Example 2: Terminal Illness
  Mark, who has been diagnosed with a rapidly progressing terminal illness and is in hospice care, knows his time is very limited. He calls his best friend, David, to his bedside and gives him a valuable collection of rare vinyl records, stating, "David, I know I don't have much time left. I want you to have these records; they've brought me so much joy, and I know you'll appreciate them." Mark passes away peacefully two days later due to his illness.

  Explanation: This scenario illustrates a gift causa mortis because Mark made the gift while contemplating his imminent death from a terminal illness. He delivered the personal property (the record collection) to David, and he died from that illness shortly after. The gift became final upon his death.

• Example 3: Sudden Peril
  While on a deep-sea fishing trip, a sudden, violent storm capsizes Captain Ben's boat far from shore. As the boat begins to sink rapidly, Ben, knowing his chances of survival are slim, hands his waterproof satellite phone and his expensive, custom-made fishing reel to his first mate, Lisa, saying, "Lisa, if I don't make it out of this, these are yours. Use them well." Ben is swept away by a large wave and drowns, while Lisa is later rescued.

  Explanation: This is a gift causa mortis because Ben made the gift in contemplation of his imminent death from a present peril (the sinking boat and violent storm). He delivered the personal property (phone and reel) to Lisa, and he died directly from that peril. If Ben had somehow survived and been rescued, he would have retained ownership of the items.