A more thorough explanation:

Definition: Gifts in contemplation of death, also known as gift causa mortis, are gifts made by an individual who believes they may die soon. These gifts are different from regular gifts made between individuals who do not have high chances of mortality.

Regular gifts, also known as inter vivos gifts, become irrevocable as soon as the recipient accepts the gift. However, gifts made in contemplation of death do not have the same treatment. The donor can demand the gift to be returned, and the gift only becomes irrevocable once the donor dies. These gifts are taxed as if they were in the estate, not as a gift, and cannot include real estate, only personal property.

For example, if an individual is diagnosed with a terminal illness and wants to give their car to their friend before they die, they can make a gift in contemplation of death. If the individual recovers from the illness, they can demand the car to be returned. However, if the individual passes away, the gift becomes irrevocable, and the car belongs to the friend.

Another example is if an individual wants to give their jewelry to their daughter before they die. If the individual passes away, the gift becomes irrevocable, and the jewelry belongs to the daughter. However, if the individual recovers from their illness, they can demand the jewelry to be returned.

Gifts in contemplation of death are often made when individuals fear they may not have time to update their will before they pass away. These gifts can work if the court has enough evidence to infer that a gift was made.