Changes to Property After Will Execution

Question 1

Devise

Answer 1

Gift of real property; the recipient of a devise is a devisee

Question 3

Bequest

Answer 3

Gift of personal property

Question 4

Legacy

Answer 4

Gift of personal property in a will (usually money) and the recipient is called a legatee.

Question 5

Specific devise, bequest, or legacy

Answer 5

A gift of a particular item of property distinct from all other objects in the testator’s estate

Question 6

General bequest or legacy

Answer 6

Gift of general economic value that doesn’t require a specific source of payment

Question 7

Demonstrative legacy

Answer 7

A gift of a general amount that is to be paid from a designated source or fund.

Question 8

Residuary estate

Answer 8

A gift on the residue that consists of the balance of the testator’s property after paying:
1. debts, expenses, taxes
2. specific, general, and demonstrative gifts

Question 9

Ademption

Answer 9

The failure of a gift because the property is no longer in the testator’s estate at the time of their death.

Applies only to specific devises and bequests.

Question 10

Partial ademption

Answer 10

Beneficiary takes whatever is left over

Question 11

Is intent required for an item to adeem.

Answer 11

In California, which takes the minority approach, intent is relevant.

Intent to adeem can be inferred when the proceeds from the sale of property are disposed of and cannot be traced.

Question 12

Exceptions to ademption

Answer 12

1. balance of purchase price of object
2. proceeds of condemnation, insurance, or foreclosure
3. proceeds from sale by guardian or conservator

Question 13

How are bequests of securities construed?

Answer 13

As general legacies. A gift of corporate securities is specific and subject to ademption if it contains words of possession or identification.

If will makes specific bequest of securities in one entity, but that entity merges, the beneficiary is entitled to securities after merger.

Question 14

Ademption by satisfaction

Answer 14

Occurs when a testamentary gifts under the will is given inter vivos to the beneficiary by the testator between the time of the will execution and the time of death

Valid if:
1. the testator provides for satisfaction in the instrument itself or in a contemporaneous writing, or
2. the donee acknowledges, in writing, that the gift is one in satisfaction

Question 15

In California, are liens on specifically devised property exonerated (paid off with estate funds)?

Answer 15

No, unless the will so directs.

Question 16

Abatement

Answer 16

The process of reducing testamentary gifts in cases where the estate assets are not sufficient to pay all claims against the estate and satisfy all bequests and devices.

Question 17

Order of abatement

Answer 17

Testator may set out order of abatement in will.

If no order specified, estates abate in the following order:
1. intestate property
2. residuary property
3. general gifts to persons other than testator’s relatives
4. general gifts to testator’s relatives
5. specific gifts to persons other than testator’s relatives
6. specific gifts to testator’s relatives

Gifts abate pro rata.