Distribution of Property

Question 1

What is the rule of “ademption”?

Answer 1

When specific tangible personal property devised in a will and then later transferred or destroyed by the testator, the devise is treated as revoked.

Question 2

What is the doctrine of replacement property?

Answer 2

If real property is devised in a will and then later sold during the testator’s lifetime, any real property owned at the time of death and acquired as a replacement will pass under the original devise.

Question 3

What is ademption by satisfaction?

Answer 3

When specific property designated in a will is transfer to the beneficiary as an inter vivos gift, the gift satisfies the will provision and the recipient does not get to claim replacement when the testator dies.

Under the UPC, ademption by satisfaction does not apply to money, unless the testator states so in a writing.

Question 4

If the value of designated property increases between the date the will is created and the testator’s death, what happens?

Answer 4

The designated beneficiary is entitled to the increase in value.

Question 5

What is the effect of liens and attachments on specific devises?

Answer 5

• At common law, beneficiaries receiving real property could take free of liens by paying off liens from the residuary.
• Under the UPC, the recipient of real property takes it subject to a mortgage or lien.
• A few states have required the residue to absorb an equitable portion of the liability.

Question 6

What is abatement?

Answer 6

When there has been a reduction in the estate prior to the testator’s death, abatement is priority system for distributing what is left.

Question 7

What is the order in which gifts abate (eliminated from distribution)?

Answer 7

(1) Intestate property
(2) Residuary gifts
(3) General bequests to non-relatives
(4) General bequests to relatives
(5) Specific bequests to non-relatives
(6) Specific bequests to relatives