Present & Future Interests

Question 1

Purpose language

Answer 1

Language that limits only the purpose of the transfer (eg, “for the purpose of”) creates an FSA.

Question 2

Lapse v Anti-Lapse

Answer 2

Lapse = Under common law, a devise of real property can also fail (lapse) if the beneficiary under a will dies before the testator and no alternate beneficiary is named.
**When the testator indicates a clear intent that the devise survive the death of the beneficiary, the devise will not fail.

Anti-lapse: prevent a gift from lapsing if the gift is made to individuals specified by the statute (usually immediate relatives of the testator) and they leave issue who survive the testator.
==> In most jurisdictions, the anti-lapse statute is limited to grandparents or a descendant of a grandparent of the testator (e.g., aunts, uncles, parents, siblings, children).

==> A lapsed gift becomes part of the residuary estate.