Legal Definitions - gift over

A gift over is a provision in a will, trust, or other legal document that specifies an alternative recipient for a gift or property if the initial intended recipient cannot or does not receive it, or if a certain condition is met or not met. It acts as a contingency plan, ensuring that the property is directed to a secondary beneficiary according to the donor's wishes, rather than falling into the general estate or being distributed by default legal rules.

• Example 1: Contingent Beneficiary in a Will

  A will states, "I leave my entire collection of rare books to my daughter, Clara. However, if Clara predeceases me, then I gift over the collection to my alma mater's library."

  Explanation: In this scenario, the university library is the "gift over" beneficiary. If Clara passes away before the person who made the will, the rare book collection does not become part of Clara's estate or the general assets of the will. Instead, it is specifically directed to the university library as per the explicit instruction in the will.

• Example 2: Condition Not Met in a Trust

  A trust document establishes a fund, stating, "I direct that $50,000 be held in trust for my grandson, Leo, to be distributed to him upon his successful completion of a master's degree program. If Leo does not complete a master's degree program by the age of 30, then I gift over the $50,000 to the local scholarship fund for underprivileged students."

  Explanation: The local scholarship fund is the "gift over" recipient. If Leo fails to meet the specified condition (completing a master's degree by age 30), the money does not revert to the trust's general assets or other heirs. It is specifically designated to go to the scholarship fund, fulfilling the donor's alternative intention.

• Example 3: Termination of a Life Estate

  A property deed grants a life estate, stating, "To Mr. Arthur Jenkins for the duration of his natural life, and upon his death, I gift over the property to the National Park Service."

  Explanation: Here, the National Park Service is the "gift over" beneficiary. Mr. Jenkins has the right to use and occupy the property during his lifetime. Once his life estate terminates (upon his death), the property automatically transfers to the National Park Service, rather than becoming part of Mr. Jenkins's estate or being subject to his will.