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Warning
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Simple English definitions for legal terms
class gift
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A quick definition of class gift:
A class gift is when someone gives something to a group of people, but the exact number of people is not known yet. The share of each person depends on how many people end up being in the group. For example, if someone gives a class gift to "grandchildren," the share of each grandchild will depend on how many grandchildren there are when the gift is given. It's like a surprise present for a group of people!A more thorough explanation:
A class gift is a type of gift where the donor intends to benefit a group or class of people, rather than specific individuals. The number of recipients is uncertain at the time of the gift, but will be determined at a future time. Each recipient will receive a share of the gift, dependent on the ultimate number of people in the group.
For example, a donor may give a class gift to "grandchildren" or "nieces and nephews." The number of recipients will depend on how many grandchildren or nieces and nephews the donor has at the time of the gift. Each recipient will receive a share of the gift, based on the total number of grandchildren or nieces and nephews.
Class gifts are different from specific gifts, where the donor intends to benefit specific individuals. Class gifts are often used in estate planning, where the donor wants to leave a gift to a group of people, but does not know how many people will be in the group at the time of their death.