Gift Causa Mortis: What It Is and How It Works

Key takeaways
* A gift causa mortis is a gift of personal property given by someone who reasonably expects to die soon.
* It is conditional and revocable while the donor is alive; it becomes final only if the donor actually dies.
* For federal estate-tax purposes, these gifts are generally treated like bequests in a will.

What is a gift causa mortis?
A gift causa mortis (Latin: “in contemplation of death”) is a deathbed gift of personal property made by a donor who anticipates imminent death. It is distinct from a regular inter vivos gift (made during life) and from a testamentary bequest in a will.

How it works — essential elements
Most courts require three basic elements for a valid gift causa mortis:
1. Intent: The donor must intend to make a gift because they expect to die from a specific impending cause (e.g., a life-threatening illness or imminent injury).
2. Delivery: The donor must deliver the property to the recipient (the delivery can be actual, constructive, or symbolic depending on circumstances).
3. Acceptance: The recipient must accept the gift.

Conditional and revocable nature
* Revocable while alive: The donor can revoke a causa mortis gift at any time before death, for any reason. If the donor survives the peril that prompted the gift, the gift is typically automatically revoked.
* Conditional on the beneficiary’s survival: If the intended recipient dies before the donor, the gift is revoked and does not pass to the recipient’s estate.
* Becomes final on donor’s death: If the donor later dies as anticipated, the gift becomes irrevocable.

Differences from other transfers
* Versus inter vivos gift: An inter vivos gift is generally irrevocable once delivered and accepted; a causa mortis gift is revocable until the donor’s death. Tax treatment also differs.
* Versus testamentary bequest: A will-based bequest is governed by testamentary formalities and takes effect under probate law; a causa mortis gift operates outside the will but is treated like a testamentary transfer for certain tax purposes.

Tax treatment
Gift causa mortis is typically included in the donor’s estate for federal estate-tax purposes because it is not complete until death. Some jurisdictions have specific rules; additionally, certain transfers made shortly before death (such as inter vivos gifts made within a statutory look‑back period) may be treated similarly for estate-tax calculations. Consult a tax professional for advice about specific situations.

Practical considerations
* Types of property: Traditionally applied to personal property. Rules about real property vary by jurisdiction.
* Proof and documentation: Because these gifts arise under unusual circumstances and may be contested, evidence of intent, delivery, and acceptance is important.
* Alternatives: Wills and trusts usually provide clearer, more predictable ways to transfer assets at death. If you’re planning transfers near the end of life, consider formal estate planning to avoid disputes.
* Legal advice: Laws differ by state and country; consult an attorney experienced in estate law when dealing with or contesting a causa mortis gift.

Example
A person facing imminent surgery gives family jewelry to a trusted friend, saying, “If I don’t make it through, this is yours,” hands it over, and the friend accepts. If the donor dies from the anticipated cause, the jewelry becomes the friend’s irrevocable property. If the donor recovers, the gift is revoked.

Summary
A gift causa mortis is a conditional, death-contingent transfer of personal property made by someone who expects to die soon. It requires intent, delivery, and acceptance; is revocable while the donor lives; and is generally treated as part of the donor’s estate for tax purposes. Because laws and tax rules vary, careful documentation and legal or tax advice are recommended when a deathbed gift is contemplated or contested.