Changes in the distribution of Property Flashcards
Abatement ?
The estate insufficient to pay all the debts and claims.
Gifts are reduced pro rata under a will to satisfy the debts and claims of an estate in the following order:
- intestate property
- residuary devises
- general devises
- demonstrative devises
- specific devises
Ademption by extinction
If specifically devised property is not in the testator’s estate when testator dies, the bequest adeems – the gift fails.
In CA, the testator’s intent is critical in determining whether a gift adeems, and extrinsic evidence is admissible.
Ademption is not favored in CA – and generally the beneficiary will recover replacement property if the original gift is no longer in the estate.
Ademption by satisfaction
An inter vivos gift in advance will be treated as a satisfaction of a testamentary gift if
(1) instrument specifies deduction of the lifetime gift from the testamentary gift OR
(2) T declares in a contemporaneous writing that transfer is to be deducted from the testamentary gift OR
(3) transferee acknowledges so in writing
Lapse
If a beneficiary predeceases the T, the gift lapses.
Under CA’s anti-lapse statute, a gift does not lapse if it was made to kindred (blood relation) of the testator (or of his current or former spouse or domestic partner) who predeceased the testator but left issue who survived the testator. Instead, the issue takes the gift.
Simultaneous death w/ intended beneficiary
If it cannot be established by evidence that 1 survived the other (by 120 hours), the property is administered as if the intended B predeceased T.
Disclaimer
Intended beneficiary disclaims – irrevocably refuses a gift.
Disclaimer must be in writing (identify T, the interest being disclaimed and declare the disclaimer) and signed by the B. Treated as predeceased.
No right of exoneration
In CA, a specific devise passes subject to any liens existing at death
