Deathbed gifts, known legally as donationes mortis causa, are an exceptional form of giving. They allow people to transfer assets outside the conventional requirements of a will, often in urgent circumstances.
While these gifts can serve a purpose in specific scenarios, their legal implications are nuanced and complex. This article explores the legal framework of deathbed gifts, the risks involved, and practical advice on handling them, with expert insights from Wills, Tax & Trusts Ltd.
What Are Deathbed Gifts?
Deathbed gifts are made in anticipation of the donor’s death, bypassing the stringent requirements for wills. They are often associated with individuals facing terminal illnesses, risky surgeries, or other circumstances suggesting imminent mortality. However, the law imposes strict conditions for these gifts to be valid:
- Contemplation of Death: The donor must anticipate their death due to a specific cause, though death need not be inevitable or immediate.
- Intent: The donor must clearly intend for the gift to take effect only upon their death.
- Delivery: The item or a symbol of the gift must be physically transferred to the recipient or their agent.
Legal Precedents and Challenges
The 2021 case of Davey & Anor v Bailey & Ors highlights the judicial rigidity in applying these requirements. Despite the donor’s expressed wishes, the court invalidated multiple deathbed gifts because they failed to meet one or more of the conditions.
The court emphasised that sympathy for aggrieved parties cannot override the strict legal framework. This underscores the importance of meticulous planning and understanding the limitations of deathbed gifts.
Risks and Practical Considerations
While deathbed gifts offer a flexible option in emergencies, they come with significant risks:
- Validity: A slight deviation from the requirements can render the gift invalid.
- Challenges: Disappointed heirs often contest these gifts, leading to legal disputes.
- Vulnerability: Donors making deathbed gifts may be at risk of undue influence or questions of mental capacity.
Expert Advice: Wills Tax & Trusts Ltd
At Wills Tax & Trusts Ltd, we advise clients to prioritise robust estate planning over-relying on deathbed gifts. A professionally prepared will ensure your wishes are honoured and reduce the likelihood of disputes. If you’re considering a deathbed gift, seek expert guidance to navigate the complex legal requirements and protect your interests.
Alternatives to Deathbed Gifts
For those seeking flexibility without the risks, consider:
- Lifetime Gifts: Transfer assets during your lifetime to avoid legal complications.
- Wills and Trusts: Update your will or establish a trust to accommodate changes in your wishes.
Conclusion
Deathbed gifts may seem convenient during urgent times, but their legal intricacies demand careful consideration.
At Wills Tax & Trusts Ltd, we provide tailored advice to ensure your estate planning aligns with your intentions.
Don’t leave your legacy to chance; consult with our experts to secure your wishes effectively.
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Ray Best
Like his academic development, writing came late to Ray. He has written several published works, “Inheritance Tax Planning – My Way” and “Shareholder Protection & Partnership Protection” and has had four feature articles published in Tax Adviser magazine, but the publication he is most noted for is the joint collaboration with Tony Granger “Inheritance Tax Simplified”.
