Gifts

Question 1

Demonstrative gift

Answer 1

Specific source of gift identified
Ashburner v Mcguire (1786) = in its nature a general legacy but where a particular fund is pointed out to satisfy it

Question 2

Pecuniary gift

Answer 2

money (can be specific, general, or demonstrative)

Question 3

Residuary gift

Answer 3

Everythting left after payment of debts and distribution of gifts

Question 4

My 1,000 shares in British Airways - specific or general gift ?

Answer 4

specific

Question 5

1,000 shares in British Airways - specific or general gift ?

Answer 5

general

Question 6

Ademption

Answer 6

• • How ?
    ○ Sold
    ○ Lost
    Destroyed
    Applies to specific gifts
• • Durrant v Friend [1852] 64 E.R. 1145
    Gifts can be addeemed when they are destroyed or killed when the testator is killed (the same event)
    The beneficiary of an adeemed specific gift takes nothing

Question 7

Lapse + how to prevent it

Answer 7

Beneficiary predeceases
* A lapsed gift will either
○ Fall into residuary
or intestacy if there is not a residuary gift
Fall to be distributed per stirpes
a declaration preventing lapse can be made in the will stating a substitute beneficiary
does not apply to charitable gifts, class or gifts to joint tenants

Question 8

Exemption from lape

Answer 8

where the predeceasing beneficiary
s 33, Wills Act 1837 (statutory exception to lapse) - rather than falling into residue, it will fall into issue’s issue (automatic passage from issue to issue; the one’s living at the testator’s death)
S.33 protects the issues of the testator and prevents the property from lapsing

Question 9

A class gift

Answer 9

§ A class gift to a group of unidentified individuals, gift to be shared, people are not named, who falls within the class shares it
A gift to a class of all nieces and nephews - it remains open and the property is undistributed until there’s no such future possibility (there are time limits of how long a property stays open)

Question 10

Do gifts to charities lapse ?

Answer 10

No - charitable intention prevails

Question 11

Cy pres doctrine

Answer 11

as near as possible, if the particular charity does not exist the gift will be given to a similar one

Question 12

Commorientes Rule – “Simultaneous Deaths”

Answer 12

If it is NOT known who died first -> it goes in the order of seniority

Question 13

Abatement

Answer 13

Gifts in wills can be reduced or extinguished
The Order of Distribution of An Estate
The will might provide for different order of ademption
Where there are insufficient funds to satisfy all gifts in the will

Question 14

Order of abatement of gifts

Answer 14

○ Schedule 1, Part II, AEA 1925
○ General gifts abate before specific gifts
○ Specific gifts abate next; and
Demonstrative gifts abate with specific gifts or after, depending on if they are specific or general.

Question 15

What gifts adeem ?

Answer 15

specific

Question 16

the testator is able to be paid out of the general estate if the gift disappears - specific or general ?

Answer 16

general

Question 17

1,000 from my account at Barclays Bank - what gift is this ?

Answer 17

demonstrative

Question 18

Does demonstrative gifts adeem ?

Answer 18

NO so if the source is insufficient then the rest is to be paid out of the general estate

Question 19

my house in bristol - what gift is it

Answer 19

specific realty devise

Question 20

All my land - what gift is it

Answer 20

general devise

Question 21

The rest of my land not otherwise disposed of by this will - what gift is it

Answer 21

residuary devise

Question 22

a will is witnessed by 3 witnesses, A, B, C and A is given a benefit - does the gift take effect ?

Answer 22

yes as there are two other witnesses