In contemplation of death, only movable assets can be gifted
A gift in contemplation of death can be made of any movable property which the donor could dispose of under a will.
What is a gift in contemplation of death and how to make it? Can one gift his flat in contemplation of death? — S VenkiteshA gift is said to be made in contemplation of death when the donor is ill and he expects to die shortly and delivers to another person possession of the movable property to be kept by him as gift in case the donor dies of that illness. A gift in contemplation of death can be made of any movable property which the donor could dispose of under a will. It is possible for the donor to resume such a gift before he dies. Further in a case where donor recovers from the illness during which he made the gift then such a gift will not take effect.
Further, if the donor survives the person to whom such gift was made then also such gift does not take place. If such property instead of being given away in contemplation of death is made subject matter of the Will then the bequest under a Will would require executor’s assent to perfect the title of the legatee and will be subject to probate, when applicable. Gifts in contemplation of death can be made only of a movable property. Therefore one can not gift his flat in contemplation of death.
Tarun Ghia is a chartered accountant and can be reached at ghiatarun@rediffmail.com. Pradnya Vairale is an advocate and can be reached at advpradnyag@gmail.com