4. Lapse, Ademption, Exoneration of Liens

Question 1

Lapse:

Answer 1

When beneficiary named in will or revocable trust dies before the testator, the gift lapses UNLESS anti-lapse statute which applies when the predeceasing beneficiary is T’s grandparent lineal disendant who leaves issues.

Question 2

Class gift rule:

Answer 2

When there is a gift by will to a group of persons generically described as a class (children, nephews and nieces) and some class member predeceases the testator and the lapse statute does not apply, the surviving class members take.

Question 3

Specific devisee has the right to the remaining specifically devised property and:

Answer 3

1. Any balance of purchase price owing from purchaser when contract is still executory at T’s death. (At common law, equitable conversion would apply, and T would no longer own real property, but merely a claim to the remaining purchase price.)
2. Any amount of condemnation award for taking of the property, to the extent unpaid at T’s death.
3. Any amount of fire or casualty insurance proceeds unpaid at death.
4. Property acquired as a result of a foreclosure of a security interest on a specifically devised note.