Classification Of Gifts

Question 1

Devise

Answer 1

Gift of real prop

Question 2

Bequest

Answer 2

Gift of personal prop

•specific bequest: specific item
•specific bequest of general nature: not distinguishable from estate until death

Question 3

Legacy

Answer 3

Gift of personal prop not sufficiently described to be specific (usually $)

Question 4

Demonstrative Legacy

Answer 4

Sum of $ gift payable from specific account

Question 5

Residuary gift

Answer 5

Where remainder of estate goes

Question 6

Ademption

Answer 6

Item given no longer in estate = gift fails

Exceptions.
•state may allow replacement if similar
•get balance of purchase price
•guardian sold proceeds
• condemnation of insurance proceeds

Question 7

Ademption by satisfaction

Answer 7

Receive gifted prop before testators death (usually must be in writing)

Question 8

What if debt owed on gift?

Answer 8

Depends on state

Question 9

Abatement

Answer 9

Process of decreasing gifts when estate prop is inadequate to satisfy debts/gifts

Order:
•real prop
•residual gift
•gen gift
•demonstrative gifts
• specific gifts

Question 10

What happens if beneficiary dies? ( via death or rejected gift)

Answer 10

Gift lapses: fails because beneficiary doesn’t survive testator

Question 11

How do you distribute lapsed prop?

Answer 11

-look at wills terms
-see if anti lapse statute
-residuary clause
-intestacy

Question 12

Anti Lapse statute

Answer 12

Allows descendants to get beneficiaries lapsed gift

Relationship needed varies by state

Question 13

Lapse in residuary gift

Answer 13

Common L: deceased beneficiaries gift passes by intestacy

Modern: surviving residuary beneficiaries divide deceased beneficiaries share