Donatio Mortis Causa (DMC)
Q1 Best Answer: B
A donatio mortis causa (DMC) is a gift made:
In contemplation of the donor’s impending death;
Conditional upon that death occurring; and
Accompanied by delivery of dominion or control over the property.
The grandfather believed he was dying, stated that the grandson should have the yacht if he died from the illness, and handed over the keys. When the grandfather subsequently died from that illness, the requirements for a DMC are arguably satisfied.
A DMC operates as an exception to the normal formalities required for gifts made on death.
Why the other answers are wrong
A. Handing over the keys does not immediately transfer ownership of a registered yacht during the grandfather’s lifetime.
C. Property can sometimes pass by DMC even though it was not left by will.
D. A resulting trust does not arise on these facts.
E. DMCs are not automatically excluded merely because the property is registered.
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Q2 Best Answer: C
A valid donatio mortis causa (DMC) operates outside the will and outside the estate. If the requirements for a DMC are satisfied, the property passes directly to the donee upon the donor’s death and does not fall into the estate for distribution under the will.
The requirements are:
The gift is made in contemplation of impending death.
The gift is conditional upon death.
The donor transfers dominion or control over the property.
The grandfather believed he was dying, said the grandson should have the yacht if he died from the illness, handed over the keys, and then died from that illness. These facts strongly support a DMC.
Therefore, despite the will leaving everything to the wife, the yacht would pass to the grandson if the DMC is valid.
Why the other answers are wrong
A. A DMC is an exception to the normal rules governing gifts on death.
B. The will does not revoke a later valid DMC; a DMC takes effect outside the will.
D. A resulting trust is not the appropriate analysis.
E. There is no basis for dividing the yacht between the wife and grandson.
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