Terminally Ill
When a person is not expected to live more than 12 months.
Investopedia Commentary
Any gifts given out by the afflicted person at this time may be considered as a distribution of the estate rather than a gift.
Related Links
Getting Started On Your Estate Plan
Skipping-Out on Probate Costs
Inherited Retirement Plan Assets - Part 1
See also: Dread Disease Rider, Gift, Gift Tax, Life Insurance, Variable Death Benefit, Viatical Settlement