Legal Definitions - gratuitous allowance

A gratuitous allowance refers to a regular payment of money or other benefits made voluntarily by one party to another, without any legal obligation to do so and without expecting anything in return. It is given freely, often out of generosity, goodwill, or a sense of moral obligation, rather than as a result of a contract, statute, or court order.

• Example 1: Family Support

  An elderly parent, who is financially secure, decides to send a monthly sum of $500 to their adult child to help with their mortgage payments. There is no legal requirement for the parent to provide this financial assistance, nor is there any expectation that the child will repay the money or provide specific services in return. This regular payment is a gratuitous allowance because it is given voluntarily and without legal compulsion.

• Example 2: Philanthropic Support

  A successful entrepreneur, impressed by a local community center's work, commits to providing a quarterly donation of $2,000 to support its youth programs. This commitment is not formalized by a legally binding contract, and the entrepreneur receives no direct goods or services in exchange. The regular donations constitute a gratuitous allowance, as they are made out of generosity and a desire to support the community, without any legal obligation.

• Example 3: Post-Employment Gesture

  After a long-serving employee retires, the company owner, out of personal appreciation for the employee's dedication, decides to send them a small monthly stipend for a year to help them adjust to retirement. This payment is not part of the employee's pension plan, severance package, or any contractual agreement. It is a gratuitous allowance because it is a voluntary gesture of goodwill, made without any legal duty to continue payments.