Conditional Gifts

Key plot point of Prof. Sutton’s movie! Must be married by midnight on Halloween to receive property under a will.

Condition Precedent Event must occur before beneficiary may claim the gift. Prof. Sutton’s movie. “I leave $10,000 to X if she is a law school graduate at the time of my death.”

Condition Subsequent Beneficiary receives and retains the gift until the condition is violated. “I leave my house to X but if X is convicted of a crime, then the house goes to Y.” X has a fee simple subject to a shifting executory limitation. Y has a shifting executory interest.

Validity of Conditions 1. Statement of Use “I leave Alice $50,000 so she can pay the law school tuition of her daughter, Doris.” Alice uses the money for a world cruise. Normally, precatory.

Validity of Conditions 2. Illegal or against public policy purpose “I leave $50,000 to X if she kills Y within six months of my death.” Ineffective.

Validity of Conditions 3. Personal habits. Often upheld.

Validity of Conditions 4. Marriage Depends on facts.

Validity of Conditions 5. Divorce Likely invalid.

Validity of Conditions 6. Others

Recommendations 1. Make condition clear. 2. Provide gift over: If condition violated, and If condition deemed illegal or against public policy. 3. Use a different estate planning technique such as a trust.