Which of the following is NOT allowed in a true escrow arrangement?

In a true escrow arrangement, a neutral third party holds funds or documents until certain conditions are met, ensuring that neither party can access the items until the agreed-upon criteria are satisfied. The definition of a true escrow typically allows for various forms of transactions, such as enforceable agreements and irrevocable arrangements, as they align with the principles of mutual consent and secure handling of funds or documents.

Gifts, however, are not typically part of a true escrow arrangement. This is because a gift implies a transfer of ownership from one party to another without an exchange of valuable consideration or conditions that define the relationship seen in purchase agreements. If the transfer does not require conditions to be met, it does not fit the escrow model, which revolves around the idea of conditional performance.

Irrevocable arrangements and enforceable purchase agreements are consistent with the purpose of escrow, which is to manage and fulfill conditional obligations. Death escrows can also be established under specific conditions, often irrevocable, to ensure that certain actions are taken after a party's death, illustrating a valid use in estate planning.

By understanding these distinctions, it becomes clear that gifts do not require the same type of conditionality inherent in true escrow arrangements, making them an unsuitable component in such dealings.