Malcolm Finney takes a look at a quirky aspect of tax planning.
To answer the question posed in the title of this article, ‘yes’ - so-called deathbed planning is legally possible. The technical term is ‘donatio mortis causa’, which has its origin in Roman law.
A last resort
The term ‘deathbed’ planning is perhaps somewhat emotive, but should not be dismissed by those seeking to minimise any taxation charges arising on their death. However, while deathbed planning is a valid planning option, it really should only be used as a last resort. Although referred to as deathbed planning, it actually occurs during the lifetime of the individual donor, albeit at a time close to death.
The uniqueness of the deathbed gift is that, although taking effect on the death of the donor, it does so outside the terms of the donor’s will (or
