Problems Raised by Types of testamentary Gifts

Question 1

Specific Devise or Bequest

Answer 1

Gifts of Specific Property

Question 2

Demonstrative Legacy

Answer 2

A gift of a general amount from a specific source.

Question 3

General Legacy

Answer 3

Specific sum of money

Question 4

Residuary Gift

Answer 4

Remainder of Estate

Question 5

Intestate property

Answer 5

If there is a partial intestacy

Question 6

Abatement

Answer 6

Too much debt against estate that there is not enough assets to cover gifts abate pro rata in the following: intestate property, residuary estate, general legacy, specific bequests/demonstrative legacies.

Question 7

Ademption

Answer 7

Specific Gift of property is made and property is no longer owned by Testator at death.

Question 8

Statutory Exemptions to Ademption

Answer 8

Specific Devisees take any remaining specifically devised property AND unpaid balance of purchase price by reason of sale of property; condemnation award, to extent unpaid at testator’s death; casualty insurance proceeds, extent unpaid at testator’s death; Property acquired as replacement.

Question 9

Bequest of Stock and Other Securities

Answer 9

If words “MY” are present in gift, treat as specific bequest and ademption applies.

A specific bequest of stock includes stock produced by stock split,dividends and stock resulting from merger/reorganization.

Question 10

Specific Bequest of Encumbered Property

Answer 10

Common Law: Liens exhonerated.

Modernly: No exoneration of liens, UNLESS WILL DIRECTS EXONERATION