Death Bed Gifts

Donatio Mortis Causa also referred to as a death bed gift is when someone makes a gift in contemplation of death and the gift is conditional on their death. To make a valid death bed gift, the gift has to be made in contemplation of death and only vests on the death of the Donor. The gifted asset has to be capable of being passed and the item has to be delivered to the Donee.

In the case of Keeling v Keeling, Mrs Exler died in 2012, intestate, but prior to her death, after she had suffered heart failure she had given the property to one of her brothers, Stephen. Mrs Exler had handed Stephen the title deeds and the keys and said that she would rather he had the house when she died. The property was the main asset in the estate. Mrs Exler passed away 6 months later and it was argued that the house was therefore not in the estate and passed to Stephen absolutely.

The other beneficiaries of the estate did not believe that this was a valid gift and challenged the validity. The Court decided that the property was not classed as a death bed gift because she had made the gift after a heart attack and was not making the gift in contemplation of death as she went on to survive a further 6 months after the attack. The contemplated death did not occur and the gift therefore lapsed.

If you want to ensure that you assets pass to who you want to receive them, you need to specify this in a Will.

Should you wish to make a Will or require further information please contact the Private Client Team at mosshaselhurst solicitors, Telephone Northwich 01606 74301.