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Question 1
Uncle wants to give a birthday gift to Nephew. So, he mails Nephew a check for $10,000. While the check is in the mail (before it reached Nephew), Uncle dies. Nephew receives the check, but Uncle's estate demands that Nephew give the check back. Is the estate correct?
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct An inter-vivos gift must satisfy all 3 elements, intent, delivery and acceptance, while the donor and donee are both alive. Also, while it is true that someone else can accept a gift for a donoee, the mail carrier is an agent of the sender, not the recipient, so the gift was not received by Nephew before Uncle dies. Finally, this is not gift causa mortis because Uncle was not under a fear of impending death when he sent the check. Therefore D is the correct answer.
Incorrect! An inter-vivos gift must satisfy all 3 elements, intent, delivery and acceptance, while the donor and donee are both alive. Also, while it is true that someone else can accept a gift for a donoee, the mail carrier is an agent of the sender, not the recipient, so the gift was not received by Nephew before Uncle dies. Finally, this is not gift causa mortis because Uncle was not under a fear of impending death when he sent the check. Therefore D is the correct answer.
Question 2
Uncle wants to give a birthday gift to Nephew of $10,000, but he doesn't have enough money right now in his bank account. So, he gives Nephew a check on July 1, but postdates the check September 1. During this time, he intends to deposit the necessary funds into the account. Is this a valid inter-vivos gift?
Correct
Incorrect!
Correct
Incorrect!
Correct Even though a gift must be given presently and cannot take effect in the future, in this case, the gift is being made and completed on July 1. The fact that Nephew can't get his money until September 1 merely means that the gift is of a future interest. However, the gift has been made and is irrevocable, as of July 1. Therefore C is the correct answer.
Incorrect! Even though a gift must be given presently and cannot take effect in the future, in this case, the gift is being made and completed on July 1. The fact that Nephew can't get his money until September 1 merely means that the gift is of a future interest. However, the gift has been made and is irrevocable, as of July 1. Therefore C is the correct answer.
Correct
Incorrect!
Question 3
Uncle wants to give a birthday gift to Nephew of $10,000, but he's not sure. So, he hands Nephew a $10,000 on July 1 that is dated September 1. Uncle says "If you behave between now and September 1, you can take the money. But I reserve the right to stop payment on the check if you're not a good boy between now and September 1. Is this a valid inter-vivos gift?
Correct
Incorrect!
Correct A valid inter-vivos gift must be of a present, unconditional interest. In this case the gift is revocable and conditional. Therefore, it is not a valid inter-vivos gift. Therefore B is the correct answer.
Incorrect! A valid inter-vivos gift must be of a present, unconditional interest. In this case the gift is revocable and conditional. Therefore, it is not a valid inter-vivos gift. Therefore B is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Question 4
Uncle wants to give a birthday gift to Nephew of $10,000. Upon hearing of this, Nephew gets so excited, that he sends his sister, Niece, to Uncle's house to pick up his check. Niece goes to Uncle's house and picks up the check for Nephew. While Niece is returning home to deliver the check to Nephew, Uncle suffers a heart attack and dies. Uncle's estate wants to recover the $10,000. Can it?
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct If an agent to receive a gift represents the donee, a gift is effective as soon as the donor gives the property to the agent. Here, Niece was an agent of Nephew, so the gift is effective as soon as it reached the hands of Niece. Therefore D is the correct answer.
Incorrect! If an agent to receive a gift represents the donee, a gift is effective as soon as the donor gives the property to the agent. Here, Niece was an agent of Nephew, so the gift is effective as soon as it reached the hands of Niece. Therefore D is the correct answer.
Question 5
Uncle wants to give his yacht to his Nephew as a birthday present. He thinks of 3 possible ways to accomplish the gift of the yacht to Nephew: A- giving him the keys to the boat B- taking him down to the marina and bringing him aboard the boat and telling him that he's transferring title to the boat C- writing down on a piece of paper that he wishes to transfer the boat to Nephew and giving him the piece of paper. Which of these, if any, are effective?
Correct
Incorrect!
Correct For a gift to be valid, there must be a delivery. For a delivery to be accomplished where physically handing over the property is not practical, a symbolic delivery is sufficient. Handing over the keys certainly qualifies as a symbolic delivery and option C describes a deed, which can also be used to transfer personal property. Option B does not describe a sufficient delivery.
Incorrect! For a gift to be valid, there must be a delivery. For a delivery to be accomplished where physically handing over the property is not practical, a symbolic delivery is sufficient. Handing over the keys certainly qualifies as a symbolic delivery and option C describes a deed, which can also be used to transfer personal property. Option B does not describe a sufficient delivery.