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Conditional Gifts
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Key plot point of Prof. Sutton’s movie!
Must be married by midnight on Halloween to receive property under a will.
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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.”
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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.
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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.
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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.
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Validity of Conditions
3. Personal habits. Often upheld.
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Validity of Conditions
4. Marriage Depends on facts.
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Validity of Conditions
5. Divorce Likely invalid.
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Validity of Conditions
6. Others
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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.
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