Types of Gifts

Introduction

Gifts can take different forms depending on when they take effect and the conditions attached to them. Understanding the types of gifts is important to determine their validity and legal effect.

Meaning / Definition

Types of gifts refer to the different categories of gift transfers based on timing, intention, and obligations attached to the gift.

Modes or Types

Lifetime Gifts (Inter Vivos Gifts)

These are gifts made during the lifetime of the donor.
The donor intends to transfer ownership immediately.

Such gifts are commonly made on occasions like:

• Birthdays
• Weddings
• Family functions

These are valid gifts if all legal requirements are fulfilled.

Deathbed Gifts (Gifts in Expectation of Death)

These are gifts made in expectation of death and take effect only after the donor’s death.

Key features:

• Gift is conditional upon death
• It does not take effect during the donor’s lifetime
• It is similar to a will in effect

If the donor survives, the gift does not take effect.

Onerous Gift

An onerous gift is a gift made with a burden (obligation or liability) attached to it.

Key points:

• The donee must accept both the benefit and the burden
• The donee cannot accept only the benefit and reject the burden
• If the donee accepts the gift, he must also accept the liability

Under Section 127 of the Transfer of Property Act:

• If the donee is not willing to accept the burden, he can refuse the gift
• If he accepts it, the gift becomes valid along with the obligation

Distinction / Comparison

Lifetime Gift vs Deathbed Gift

• Lifetime gift takes effect immediately
• Deathbed gift takes effect after death
• Lifetime gift is governed by Transfer of Property Act
• Deathbed gift operates similar to a will

Simple Gift vs Onerous Gift

• Simple gift has no burden attached
• Onerous gift has obligations or liabilities
• Donee must accept the burden in onerous gift

Practical Example

A gifts his house to B during his lifetime. This is a lifetime gift.

A promises to give his property to B after his death. This is a deathbed gift.

A gifts a mortgaged house to B. If B agrees to take responsibility for the loan, the gift is valid as an onerous gift. If B refuses the burden, the gift fails.

Summary

• Gifts can be classified based on timing and conditions
• Lifetime gifts take effect immediately
• Deathbed gifts take effect after death
• Onerous gifts carry obligations or liabilities
• Donee must accept both benefit and burden in onerous gifts
• If burden is not accepted, the gift is not valid