Property
Gifts
CB 195-211, 182-195
Gift: Generally speaking, immediate transfer of property rights from the donor to the donee without
any payment or other consideration
 While contract is not binding unless there is consideration; an actual gift conveys title to the
receiver (donee)
Testamentary Gift: effective only after the donor dies, usually made in a will
Lift Estate: Present interest (immediate right to possession) during the duration of a lifetime. Can
return to original grantee, or a third party. If a third party, third party holds a Remainder.
Remainder: Future interest (future right to possession) held where when a life estate ends, the
possession reverts.
Inter Vivos
Inter Vivos Gifts: usual gift, made during the donor's lifetime; requires all three:
 Donative intent: donor must intend to make an immediate transfer of property
 Delivery: the property must be delivered to the donee, so that the donor parts with
dominion and control
 Acceptance: presumed unless there are special circumstances to give doubt (eg engagement
ring, pet)
Types of delivery:
 Manual delivery: physical delivery of the gift to transfer possession
 Constructive delivery: like a key, object that provides physical access to the gift
 Symbolic delivery: represents or symbolizes the gifted item, like a letter or stock certificate
Gruen v. Gruen (1986)

Facts: Son gifted Klimt painting from father (gifted remainder, father retained life estate),
step-mother refusing to turn-over painting after father's death

Discussion: Turns on what was gifted when. Father gifted son an immediate interest (a
remainder) despite maintaining a possessory interest during his lifetime (through his life
estate). Not testamentary because of immediate and present transfer.

Holding: Affirmed, found for son, finding valid IVG (1) donative intent (remainder is a
present interest irrevocably transferred effective immediately), (2) symbolic delivery,
requiring physical for a life-estate/remainder makes no sense (would just be a back-andforth), (3) acceptance presumed because of value but also showed to friends, discussed, etc.

Class:
Property
o
o
o
o
o
o
o
o
Father is conveying a property interest at T-0: property interest can be divided over
time. Eg - you own the remainder interest immediately, even though you don't take
possession until the donors death.
Transfer rights: you can only purchase the rights the seller holds, Gruen Jr can sell
his remainder but not present possessory rights (held by Sr in life estate) --> UCC,
you can't convey a better interest than you have
Destruction: when you have a life estate, you have an obligation to not destroy or
diminish the value of the property - obligation is to remainder-holder; would owe
damages to remainder-holder
Irrevocable: once inter vivos gift is consummated, cannot go back on it; different
than making a promise or testamentary gift
If gift is a check, no gift occurs until the check is cashed
Statutory trend to accept transfer made in writing
Several hypos in CB on delivery - each turns on whether any of the there categories
were specifically met (i.e., oral permission is not enough, requires physical,
constructive, or symbolic delivery; potential argument if you leave a gift specifically
for someone in a place, like Christmas gifts; if impracticable, write a letter). -on call,
crushed itConveyance and gifting can be separate: e.g., after lending someone a thing, you can
call and gift it to them; at that point you are already feeling the loss of the thing and
a physical exchange would be redundant; requires separation not an intentional
conveyance (so leaving something behind by accident and then saying keep it = gift)
Causa Mortis
Gift Causa Mortis: a gift of personal property made by a living person in contemplation of death.
Four elements are required: (1) donative intent, (2) delivery, (3) acceptance, (4) donor's anticipation
of imminent death
 Immediately effective when it is made, legally binding gift
 Donor may revoke at any time before death
In re Estate of Oaks (2020)

Facts: Oaks left letter gifting entire estate to girlfriend prior to suicide. Estranged daughter
sues that causa mortis does not apply to suicides.

Discussion: Gifts made causa mortis requires (1) intent to make a gift at death, (2) made gift
"with a view to death from present illness or external, apprehended peril", (3) dies of that
illness/peril. Turns on if suicide qualifies fits within (2).

Holding: Here, yes - GCM - because suicide was caused by mental illness, thus mental illness
was the apprehended peril and gift was valid

Class: [Exam: said not a big thing, spent one minute here]
o Basically an end-run around will requirements (multiple witnesses, etc.)
o Some states find GCM where death comes at same time but different cause but
related
o Delivery rule is relaxed where living in the same household
Property
o
Majority rule holds revocable depending on future circumstances (recovery =
automatic) but may lose right to recover if unreasonable delay
Additional Materials (Gifts, Hypos)
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O owns a diamond ring...
(1) where D doesn't call the day after the ring, instead ...
A is invited to the wedding of B and C...
H hands a letter to his daughter...
Property
Case
Gruen v. Gruen (1986)
Court
Court of Appeals of New York
Opinion
Simons
Rule of Law
To make a valid inter vivos gift, the donor must intend to make a
present transfer, either actual or constructive delivery of the gift must
occur, and the donee must accept the gift.
Fact
o
Victor Gruen sent a series of letters to his son, Michael
(plaintiff), indicating his intention to give Michael a
valuable painting for his 21st birthday.
o
Victor did not deliver the painting but kept it in his
multiple residences.
o
The painting was to be given to Michael upon Victor’s
death, with Victor holding a life estate in the painting.
o
Upon Victor’s death, Victor’s wife and Michael’s
stepmother, Ms. Gruen (defendant), refused to give
Michael the painting. Michael then brought this action.
History
The special term court determined that by retaining a life estate in the
painting, Victor invalidated the gift. Michael appealed. The Appellate
Division found that a gift is valid even if a life estate is retained in the
gift. Ms. Gruen petitioned for certiorari to the Court of Appeals of New
York.
Issue
To make a valid inter vivos gift, must the donor intend to make a
present transfer, must either actual or constructive delivery of the gift
occur, and must the donee accept the gift?
Holding
Yes
Reasoning
o
o
To make a valid inter vivos gift, (1) the donor must
intend to make a present transfer, (2) either actual or
constructive delivery of the gift must occur, and (3) the
donee must accept the gift. The proponent of the gift
must provide clear and convincing evidence of each
element

(1) the donor must seek to make an
irrevocable present transfer. Testamentary gift
requires a will.

(2) Physical, constructive, or symbolic delivery
are all acceptable (symbolic fine, physical
impractical here)

(3) If a gift is of value to the donee, the law
presumes an acceptance on the donee's part.
Here, the lower court properly found that Michael
provided clear and convincing evidence for each
Property
element. Intent via letter, symbolic delivery was letter;
acceptance presumed and evidenced.
Other Opinions
Final Disposition Since there was a valid inter vivos gift, Michael is entitled to the
painting. The judgment of the Appellate Division is affirmed.
Notes