What does 'gift over' refer to in estate planning?

In estate planning, 'gift over' specifically refers to a gift designated to an alternate beneficiary that takes effect upon the primary beneficiary's death or failure to meet certain conditions. This mechanism is often used to ensure that in the event the primary beneficiary cannot inherit (for example, due to dying before the testator), the asset or property is then transferred to a secondary beneficiary.

This concept is crucial in drafting wills and trusts because it adds a layer of security and clarity regarding the distribution of assets. It allows a testator to directly decide who will receive the property if the first choice is unavailable, effectively ensuring that the testator's intentions are honored even if circumstances change.

The other provided choices don't adequately capture the essence of a 'gift over.' A gift made to the original beneficiary does not involve a subsequent transfer; a type of charitable donation is unrelated to beneficiary succession; and a gift that cannot be revoked addresses a different legal concern, as it does not pertain to the alternative provisions for distribution upon the primary beneficiary's death. Understanding 'gift over' is fundamental for proper estate planning to avoid potential disputes and ensure a clear succession of assets.