Changes to People and Property Before the Testator Dies

Question 1

When does the 120 hour rule not apply?

Answer 1

If the will says otherwise
If the application of the rule would result in the property escheating to the state

Question 2

Antilapse Statute

Answer 2

If a testator gives a gift to someone related to them and that person dies before the testator, the relatives descendants will take the gift instead

Note: only applicable If he beneficiary who predeceased the

Question 3

Define: Ademption

Answer 3

When there is specifically bequeathed property in the will that is no longer a part of the estate at the testator’s death

Question 4

Presumption of NonAdemption

Answer 4

• Applies in Michigan
• Where another statutory provision does not compensate the beneficiary for the value or replacement of specifically bequeathed property, the devisee is entitled to one of the following, unless the facts and circumstances show that ademption was intended by the testator or within the testator’s manifested plan of distribution:
  
  • insurance proceeds for injury to the specifically devised property unpaid at the death of the testator
  • replacement property - property procured by the testator as a replacement for the devised property, or
  • (if the two above are not available) the beneficiary will recover the value of the property

Question 5

Does Ademption apply to demonstrative or general legacies?

Answer 5

No, it applies to specific gifts only

Question 6

Define: specific devices

Answer 6

identified property in will

Question 7

Define: demonstrative legacy

Answer 7

a gift to be paid out of a specific source (ex: I give Devon $100,000 from my Amazon stock)

Question 8

Define: General Legacy

Answer 8

money from general assets of estate (ex: I give $500 to Devon)

Question 9

Define: Residurary

Answer 9

whatever is leftover (Ex: I give there rest and residue to Devon)

Question 10

Define: Intestate Property

Answer 10

Whatever is not accounted for in the will (either because it is poorly drafted or does not have a residuary clause)

Question 11

If there are so many claims against an estate that there is not enough to honor the will, where will debts and costs be paid out from?

Answer 11

1. intestate property,
2. residuary
3. general and demonstrative legacies
4. specific gifts

(Unless the Will says otherwise)

Question 12

Acretions

Answer 12

• increase in value of stocks usually due to stock splits or dividends
• When a testator gives stock that it owns to a beneficiary in a will and then later, after the will is executed, obtains more stock through stock splits and dividends, the beneficiary is entitled to all of the stock including the increase