Changes in Beneficiaries Flashcards
Define
Georgia Anti-Lapse Statute
- Georgia’s broad anti-lapse statute will operate to save a gift if the predeceasing beneficiary left issue who survived the testator.
- The anti-lapse statute applies unless contrary intention appears in the will.
- If the beneficiary (1) kills the testator or (2) divorces the testator - the beneficiary’s issue will take only if the issue also are descendants of the testator.
Lapse in Residuary Gifts
If the residuary estate is devised to 2 or more persons and the gift to 1 of them fails for any reason, the surviving residuary devisees take the entire residuary estate in proportion to their interests.
Define
Specific Devise
A specific devise is a gift of specially described property that can be satisfied only by receipt of the particular property described.
Define
General Legacy
A gift of a general economic benefit payable out of the general assets of the estate without requiring any particular source of payment.
Define
Demonstrative Legacy
A gift of a general amount that is to be paid from a particular source or fund. If the designated fund is insufficient, the balance will usually be paid from other assets of the estate.
Define
Residuary
Consists of the balance of the testator’s property after paying debts, expenses, and taxes, and specific, general, and demonstrative gifts.
Define
Abatement
The process of reducing testamentary gifts in cases where the estate assets aren’t sufficient to pay all claims against the estate and satisfy all bequests and devises. Gifts abate in the following order:
- The property charged with debts by the terms of the will
- The residuary estate
- General testamentary gifts
- Demonstrative testamentary gifts
- Specific devises [A gift to a surviving spouse abates last]
Define
Ademption
If property that is the subject of a specific legacy or devise has been sold, given away, lost, or destroyed during the testator’s lifetime and isn’t in the estate at death, the gift is adeemed. Ademption may be total or partial - the testator’s intent is immaterial.
- Property substituted for other of a like character will not be adeemed.
- General and Demonstrative legacies not affected.
Define
Accession
Increases in or additions to the property described in the will that occur after the will is executed. Accessions that occur after the testator’s death go to the specific legatee. Accessions that occur before the testator’s death are distributed as follows:
- Income collected from the property goes into the general estate.
- Cash dividends on stock go into the general estate.
- Stocks acquired by stock dividends go into the general estate.
- Stock acquired by a stock split goes to the specific legatee.
- Improvements to real property go to the devisee.
Exoneration of Liens
A donee of specifically devised real or personal property subject to an encumbrance may have a right to compel the executor of the estate to discharge the encumbrance.
Define
Pretermitted Spouse
If the will was made prior to marriage, and doesn’t contain a provision in contemplation of it, the subsequent spouse receives the share of the estate they would have received had the testator died intestate.
Define
Year’s Support
The surviving spouse and minor children are entitled to a year’s support from a testate or intestate estate for their support and maintenance.
The spouse requests the award by petition and is awarded the amount requested unless there is an objection. If there is an objection, the award is calculated by looking at the spouse’s and children’s accustomed standard of living.
Define
Pretermitted Children
If a testator fails to provide for any of their children born or adopted after the will is executed, the child is entitled to a share of the estate.
Note, however, that a testator may disinherit a child, pretermitted child statutes are not intended to remedy an intentional disinheritance.
What remedy if a testator mistakenly believed their child was dead?
The child is entitled to an intestate share of the estate.
