A paralegal is explaining the concept of 'inter vivos gift' to a client. Which of the following scenarios describes a valid inter vivos gift?
- AA will bequeathing a valuable painting to a niece upon the testator's death.
- BA person placing a diamond necklace in a safety deposit box, intending to give it to their sister 'someday.'
- CA grandmother handing her antique watch to her granddaughter, stating 'This is now yours,' with the granddaughter accepting it.
- DA father promising his son a new car for his graduation next year.
Show answer & explanationAnswer & explanation
Correct answer: C. A grandmother handing her antique watch to her granddaughter, stating 'This is now yours,' with the granddaughter accepting it.
An 'inter vivos gift' is a gift made during the donor's lifetime, which is irrevocable. It requires three elements: donative intent, delivery, and acceptance. In scenario B, the grandmother has donative intent ('This is now yours'), there is physical delivery (handing the watch), and the granddaughter accepts it. This meets all criteria for a valid inter vivos gift.
Why the other options are wrong
- A. A will describes a testamentary gift, which only takes effect upon death and is revocable until then, not an inter vivos gift.
- B. Placing an item in a safety deposit box without communicating the intent or delivering it to the sister lacks both delivery and acceptance, and the intent 'someday' is not present donative intent.
- D. A promise to give a gift in the future is not a present transfer and lacks immediate delivery, thus not an inter vivos gift.
Inter Vivos Gift
A gift made during the donor's lifetime, which is irrevocable once completed. It requires donative intent, delivery of the gifted property, and acceptance by the donee.
- Made during the donor's lifetime.
- Irrevocable once complete.
- Requires intent, delivery, and acceptance.
Memory trick: Intent to give, deliver, and accept make a living gift.