Gift Giving - ‘tis The Season

It is the season for gift giving.  However, it is often the case that we do not consider the legal implications of gift giving, especially at this time of the year.

‘The yacht is all yours, you can have it’ are the words we hope to be hearing this festive season.  These are the words that Mr Rowland heard from his stepfather upon his stepfather, Mr Stevenson, handing him the keys to his 42-foot Beneteau Yacht.

However, Mr Stevenson later changed his mind and attempted to take the Yacht back.  Mr Stevenson argued that because he only handed Mr Rowland the keys to the Yacht and not the Yacht itself, it could not be implied that he had intended to give the Yacht to his stepson.

Gifting means to give away something without gaining any benefit.  There are a number of legal requirements that need to be present before a gift is said to be given.  Firstly, the person giving the gift must have a clear title to the item and the item must be of a personal nature.  Secondly, the person giving the gift must show a clear intention of gifting the item to another.  Generally, a gift is also voluntarily given by a person to another without the expectation of receiving anything in return nor gaining any benefit.

In this case, the New South Wales Supreme Court found that the handing over of the keys from Mr Stevenson to Mr Rowland was enough to make out the legal requirements of a gift.  The Court found that Mr Stevenson had constructively delivered the Yacht to Mr Rowland when he handed over the keys.  As a result, Mr Rowland was allowed to keep the Yacht.

We at Granich Partners hope that if not a yacht, you will receive what you wish for this Christmas.  We take this opportunity to wish you a very merry festive season and a safe and happy 2023.  

If you require any further information regarding gift giving or any of the topics covered by us during 2022, please do not hesitate to contact us.