Gifts to Particular Beneficiaries Flashcards
Key considerations for gifts to issue?
Individual vs. class gift; vested or contingent; provision if beneficiary pre-deceases.
Definition of ‘Issue’ includes?
Illegitimate, legitimated (parents marry later), and adopted children. Excludes stepchildren.
When should class gifts be used instead of naming individuals?
When no specific reason exists to name individuals separately.
When does class gift close if contingency (e.g., reaching age 21) exists?
Class closes when the first class member satisfies the contingency.
When does a class gift close if no contingency exists?
On the testator’s date of death, provided at least one beneficiary qualifies.
What is a vested interest?
Gift given outright and absolutely with no conditions needing to be met.
Does age affect vesting of a gift?
No, vesting occurs irrespective of age; minor’s gift is held on trust until 18 (or 16/17 if expressly permitted).
What happens to a vested gift if a minor beneficiary dies before 18?
It passes to the minor’s estate.
What is a contingent interest?
Beneficiary must satisfy condition (e.g., reaching age 21) before gift vests.
What happens if beneficiary dies before meeting contingency?
Gift lapses and beneficiary’s estate cannot claim it.
Outcome if beneficiary pre-deceases testator?
Gift lapses; pecuniary gifts pass to residue, lapsed residuary gifts cause intestacy.
Purpose of substitutional gifts?
Prevent lapsing by specifying alternative beneficiaries if original beneficiary pre-deceases.
Typical substitution clause for deceased children’s shares?
Children’s share passes to grandchildren who survive and meet specified conditions (often reaching age 21).
Effect of Section 33 Wills Act 1837?
If you leave a gift to your child / grandchild in a will, but they die before you, it automatically goes to their children
Conditions for s33 Wills Act 1837 to apply?
Gift to testator’s issue; beneficiary dies before testator leaving descendants alive at testator’s death; no contrary intention stated in will.
What happens to the gift under s33?
Shared equally among issue of deceased beneficiary alive at testator’s death.
Should substitution clauses still be included if s33 applies?
Yes, explicit substitution clauses recommended for clarity.
How can s33 Wills Act 1837 be excluded?
Explicit wording in will showing contrary intention or expressly excluding s33.
Important information to include when gifting to charities?
Full name, address, registered charity number, status, and provision for name changes/mergers, and who can provide receipt.
What happens under Cy-Pres doctrine if charity gift fails?
Gift redirected to another charity with similar charitable purposes if original charity no longer exists or cannot accept gift.
