What defines a donative escrow with conditions?

A donative escrow with conditions involves a third party holding a deed or a title to property until a specified event occurs, in this case, typically the death of the grantor. In this arrangement, the third party (often an attorney or a trusted individual) acts as an intermediary tasked with delivering the deed to the beneficiary only upon the grantor's death. This ensures that the transfer of property happens automatically and based on the condition of the grantor's passing, effectively making it a form of a gift that is contingent upon that event.

This definition aligns with the principles of donative intent, as the grantor clearly intends to make a gift that is conditioned upon a specific event. The presence of instructions to act only upon this condition distinguishes it from other forms and highlights the importance of the timing of the delivery of the deed.

Other options presented either misinterpret the nature of a donative escrow or fail to address the essential aspect of the condition attached to the transfer. For instance, a third party who may return the deed at any time does not reflect the committed nature of a donative escrow, where the transfer is inextricably linked to the grantor's death. Additionally, the choice emphasizing only explicit conditions for property transfer overlooks the need