What is a testamentary gift?

A testamentary gift refers to a gift that is specified in a person's will and is meant to take effect upon their death. This form of gift is a way for individuals to transfer their assets or property to beneficiaries as part of their estate planning. The key aspect of a testamentary gift is that it is executed after the individual has passed away, which is why it must be stated in a will, allowing the individual to designate exactly who will receive their property.

This option captures the essence of a testamentary gift, emphasizing its connection to the legal document of a will and the timing of the transfer, which occurs only upon the death of the testator (the person who made the will). In contrast to the other choices, which refer to gifts made during one's lifetime or require specific formalities, a testamentary gift is specifically tied to the provisions laid out in a will.