Changes in Beneficiaries and Property After Execution

Question 1

Lapsed Gifts

Answer 1

Gift lapses if the B predeceases the T

Question 2

Anti-Lapse Statute

Answer 2

Operates to save a gift if the predeceasing B was in a specified degree of relationship to T and left descendants who survived T

They take by substitution unless contrary provision appears in the will

Question 3

Lapse in Residuary Gift

Answer 3

“No residue of a residue”

If will devises a residuay estate to two or more Bs and one of them predeceases T, surviving residuary B can divide the share in proportion to their interest in the residue

Question 4

Lapse of Class Gifts

Answer 4

If a will makes a gift to a class, only the class members who survive T take a share of the gift, unless the will provides otherwise or anti-lapse statute saves it

Question 5

Specific Devise or Legacy

Answer 5

Gift of a particular item of property distinct from all other objects

(e.g., my three-carat diamong ring)

Question 6

General Legacy

Answer 6

Gift of a general economic benefit (often dollar amount) payable out of general assets of the estate without requiring particular source

(e.g., $5,000 to Anne)

Question 7

Demonstrative Legacy

Answer 7

Gift of a general amount that is paid from a particular source or fund

(e.g., $5,000 to Anne to be paid from sale of my XYZ stock)

Question 8

Residuary Estate

Answer 8

Balance of T’s property after paying debts, expenses, and taxes and all other gifts

whatever is left over

Question 9

Ademption

Answer 9

Failure of a gift because the property no longer in T’s estate at time of death

Question 10

Ademption applies to what types of gifts?

Answer 10

SPECIFIC DEVISES AND BEQUESTS ONLY

If not in the estate= B takes nothing

T’s intent or reason for property no longer being there not relevant

Question 11

How are general or demonstrative legacies that are no longer in estate treated?

Answer 11

NOT ADEEMED

They are satisfied by selling (or directly giving) other assets