In terms of donor's tax, when is a donation considered void?

A donation is considered void when the owner, or donor, is declared incompetent. In legal terms, competency refers to the mental ability to understand the nature and consequences of one’s actions and to make informed decisions. If a donor is declared incompetent, they lack the capacity to make valid legal agreements, including donations. Consequently, any donation made during a period of declared incompetence is rendered void as the necessary legal criteria for a valid transfer of property has not been met.

In contrast, a situation where the donee cannot fulfill a condition does not void the donation itself. Instead, it may give rise to issues regarding the completion of the donation, but the initial donation remains valid. Similarly, the age of the donor, such as being a minor, does not automatically void a donation. However, legal guardianship and specific age-related legal provisions may apply. When the property is originally donated, it is simply part of the donation process and does not affect its validity. Therefore, the declaration of incompetence is a clear and established reason that voids a donation, emphasizing the importance of the donor's mental capacity at the time of the gift.