Post-Execution Changes to People and Property

Question 1

Types of testamentary distributions

Answer 1

(1) specific bequest/devise
(2) general legacy
(3) demonstrative bequest/devise

Question 1

Specific bequest

Answer 1

A gift of a specific article, which is identified and distinguished from all other things of the same kind, and is satisfied only by delivery of the particular thing (e.g., “my gold watch”)

Question 2

General legacy

Answer 2

A gift payable out of the general assets of the decedent’s estate and not in any way separated or distinguished from other things of like kind

Question 3

Demonstrative bequest

Answer 3

A bequest of a certain sum to be paid out of a particular fund

Question 4

Demonstrative bequest, but fund doesn’t exist

Answer 4

If the fund is not in existence at testator’s death or if there are insufficient funds, the beneficiary is entitled to payment out of the general estate

Question 5

Types of ademption

Answer 5

(1) ademption by extinction
(2) ademption by satisfaction

Question 6

Ademption by extinction

Answer 6

A gift fails because property specifically bequeathed is not in testator’s estate at their death (not applicable with a general gift)

Question 7

Examples of ademption by extinction

Answer 7

• “My 50 shares of XY stock to Jim” = Specific disposition of the identified shares → if testator owns none at their death, the bequest is adeemed
• “50 shares of XY stock to Jim” = General bequest → Jim is entitled to the value of 50 shares of XY stock at date of testator’s death

Question 8

Ademption by satisfaction

Answer 8

A gift fails because testator made an inter vivos gift to a beneficiary of a general or residuary disposition with the intent that the provision of the will be satisfied

Question 9

Ademption by satisfaction scenarios

Answer 9

A gift testator gave in their lifetime to a person is treated as a satisfaction of a devise only if:

(a) The will provides for deduction of the gift,

(b) Testator declared in a contemporaneous writing that the gift is in satisfaction of the devise or that its value is to be deducted from the value of the devise, or

(c) The beneficiary acknowledged in writing that the gift is in satisfaction of the devise or that its value is to be deducted from the value of the devise

Question 10

Abatement

Answer 10

If the assets of testator’s estate are insufficient to satisfy all the bequests or devises, the beneficiaries’ shares will abate (i.e., be reduced) in the following order:

(1) property that would pass via intestacy
(2) residuary bequests
(3) general bequests
(4) demonstrative bequests
(5) specific bequests

Question 11

Lapse

Answer 11

At common law, a devise lapses (fails) if the beneficiary predeceases testator

Question 12

Effect of lapse in the body of the will

Answer 12

Lapse in the body of the will → falls into the residuary, or if no residuary, to intestacy

Question 13

Effect of total lapse in the residuary

Answer 13

Total lapse in the residuary → falls to intestacy

Question 14

Effect of partial lapse in residuary

Answer 14

Partial lapse in the residuary → falls to the other residuary takers

Question 15

Effect of lapse in class gift

Answer 15

Lapse in class gift → falls to the other class members

Question 16

Anti-lapse statute

Answer 16

A devise is saved if:

(1) The predeceasing beneficiary was closely related to testator, AND
(2) The predeceasing beneficiary was survived by descendants who also survived testator, THEN:

▪ Those descendants will take by anti-lapse unless the will clearly expresses a contrary intent