3. Construction Problems (ALS/SS/USDA/RSDA) Flashcards
What is a lapsed legacy?
1) Beneficiary predeceases T
2) Will does not specify distribution if Ben predeceases
=> Gift lapses
What happens to a lapsed single gift?
Anti-lapse statute (most states)
- Gift passes to Predeceased Ben’s surviving descendants (if B was T’s descendant/grandparent)
Will provision
- Gift passes by will provision (right of survivorship expressly stated)
NO will provision
- Gift passes to T’s residuary estate
What happens to a lapsed residuary gift?
Anti-lapse statute (most states)
- Gift passes to Predeceased Ben’s surviving descendants (if B was T’s descendant/grandparent)
Most states
- Gift passes to surviving Bens equally (residuary clause)
Common law (some states) - Gift passes by intestate (no residue of a residue rule)
What happens to a lapsed class gift?
Anti-lapse statute (most states)
- Gift passes to Predeceased Ben’s surviving descendants (if B was T’s descendant/grandparent)
Will provision
- Gift passes by will provision
No will provision - Gift passes to surviving class members
What type of legacies may be adeemed?
Specific bequests/devises
- Courts not to enquire into T’s intent/cause of ademption
Partial conveyance of land
- Ben takes remainder of land
What type of legacies may not be adeemed?
General legacies (absence of cash/asset)
Demonstrative legacies (absence of cash/asset)
Property sale proceeds (sale contract was executory at T’s death) (common law)
Casualty insurance proceeds
Condemnation award
What type of stocks are beneficiaries entitled to?
Stock splits (common law)
Stock splits + dividends (UPC + most states)
What is required for satisfaction of legacies?
1) T’s inter vivos transfer (whole/part)
2) Testator;
- Intent
- Contemporaneous writing in will/Specifically described property given (UPC)
3) General legacies (NOT specific bequests)
What is required for exoneration of liens?
Will directs exoneration (UPC + most states)
Automatic (common law)
What is the Slayer Statute?
1) Ben/Heir killed Decedent (whose estate is at issue)
- Conviction
- Preponderance of evidence (unlawful/intentional)
2) Feloniously + Intentionally
3) Killer forfeits interest/benefit/right of survivorship
- Property passes as though killer predeceased victim
What is required for a beneficiary to disclaim his interest?
1) In writing
2) Irrevocable
3) File within 9 months of T’s death (when interest vested)
4) By Ben/Guardian/Personal Rep
- NO acceptance of gift
What is the rule for simultaneous deaths of beneficiaries?
1) Will/Non-probate transfers
2) No sufficient evidence of survival
3) Either;
- Uniform Simultaneous Death Act (USDA): Property passes as if decedent survived the other (some states)
- Revised Simultaneous Death Act (RSDA): Ben must have survived T by 120 hours/5 days (120-hour rule)
What is abatement?
1) Reduce testamentary gifts to satisfy claims that could not satisfy devisees because estate is not sufficient
2) Use set order in will/General order
- Intestate
- Residuary
- General legacies
- Demonstrative legacies
- Specific bequest/devise
