Also known as: gift of personal property · gift of chattels · inter vivos gift · donatio
Written by attorneys · grounded in primary & secondary sources — see below
An inter vivos transfer of ownership in tangible or intangible personal property from a donor to a donee that becomes complete upon delivery and acceptance. The transfer may reduce or eliminate a corresponding devise under a will when the donor contemporaneously indicates in writing that the gift is intended to operate as satisfaction of the devise.
Greta Goldstein executes a will leaving a $75,000 cash devise to her adult child Gwen Gallagher. Shortly before death Greta transfers $50,000 from a joint account into Gwen's personal account and places a note on city letterhead with Gwen's papers stating that the transfer should count as what Gwen would receive in the end. After Greta's death the personal representative treats the transfer as satisfying the devise in full.
Victor Gruen writes three letters to his son stating that he is giving the son title to a valuable painting while retaining a life estate. The son accepts the letters as evidence of the gift. After Victor's death the son claims ownership of the painting and the court treats the letters as completing an inter vivos gift of personal property.
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J. F. Van Pelt tells his housekeeper that certain furniture and a life-insurance policy are hers and hands her the keys to the rooms containing the items. After Van Pelt's death the housekeeper claims the property as an inter vivos gift. The court examines whether the delivery of keys and statements constituted effective transfer of the personal property.
Ms. Wagner endorses a $17,400 settlement check in blank and leaves it with two notes on the kitchen table expressing her intent that the funds go to her partner Scherer. Wagner dies later the same day. The court determines whether the endorsed check and notes effected a completed gift of the personal property before death.
A contemporaneous note written by the testator that links the gift to the devise meets the requirement even if the devisee does not sign or expressly acknowledge it. The note must indicate that the transfer is intended to count against what the recipient will receive under the will.
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Retention of possession is consistent with a completed gift when the donor reserves a life estate or when the donor's statements and writings show present intent to transfer title. Courts examine the donor's overall conduct and declarations rather than possession alone.
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Symbolic delivery such as handing over keys or endorsing a check can complete the gift when the items are not physically capable of manual delivery and the donor's intent is clear. The donee must be aware of and accept the transfer.
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…of a lifetime interest in the painting defeated it. She relies on a statement from Young v Young (80 NY 422) that " '[a]ny gift of chattels which expressly reserves the use of the property to the donor for a certain period, or as long as the donor shall live, is ineffectual’ ” ( id. , at p 436, quoting 2 Schouler,…