Wills Drafting: Dispositive Clauses Flashcards
What is the effect of a properly drafted substitution clause in a will?
A) It allows a named alternative beneficiary to inherit if the original beneficiary predeceases the testator.
B) It ensures the original beneficiary’s family automatically inherits in place of the original beneficiary.
C) It converts a specific gift into a general gift if the asset no longer exists.
D) It allows the executor to redistribute the asset at their discretion.
A) It allows a named alternative beneficiary to inherit if the original beneficiary predeceases the testator.
Explanation: A substitution clause ensures that if a named beneficiary dies before the testator, another person (e.g., their children) can inherit instead, preventing partial intestacy.
How does a demonstrative legacy differ from a general legacy?
A) A demonstrative legacy is a fixed sum of money to be paid from a specified fund.
B) A demonstrative legacy is always an asset rather than cash.
C) A demonstrative legacy cannot fail, whereas a general legacy can.
D) A demonstrative legacy applies only to real estate.
A) A demonstrative legacy is a fixed sum of money to be paid from a specified fund.
Explanation: A demonstrative legacy directs that money be paid from a particular fund (e.g., a named bank account). If the fund is insufficient, the remaining amount is paid from the general estate.
What is the main risk of failing to include a residuary clause in a will?
A) The will becomes invalid.
B) The testator’s entire estate passes under intestacy rules.
C) Any undistributed assets fall under intestacy rules, causing a partial intestacy.
D) The executor must choose how to distribute remaining assets.
C) Any undistributed assets fall under intestacy rules, causing a partial intestacy.
Explanation: A residuary clause ensures that all remaining assets after debts and gifts are distributed. Without one, unallocated property passes under intestacy laws, leading to partial intestacy.
Under what circumstances does the doctrine of ademption apply?
A) When a general gift is insufficient due to lack of funds.
B) When a specific gift no longer exists in the estate at the testator’s death.
C) When a residuary gift is subject to conflicting claims.
D) When an executor fails to distribute assets correctly.
B) When a specific gift no longer exists in the estate at the testator’s death.
Explanation: Ademption occurs when a specific gift (e.g., “my Rolex watch”) is no longer owned by the testator at death. If the will does not provide for an alternative, the gift fails.
A testator’s will states: “I GIVE my engagement ring to my niece, Sophie.” Before dying, the testator sells the ring. What happens to Sophie’s gift?
A) Sophie receives the sale proceeds of the ring.
B) Sophie receives another piece of jewelry of equal value.
C) The gift adeems, and Sophie receives nothing.
D) Sophie has a claim against the residuary estate.
C) The gift adeems, and Sophie receives nothing.
Explanation: A specific gift (like a ring) fails (adeems) if the testator no longer owns it at death, unless a substitution clause exists to provide an alternative.
A testator leaves “£5,000 from my HSBC savings account” to a friend. At death, the account has only £3,000. What happens?
A) The friend receives nothing, as the gift fails.
B) The executor must distribute £5,000 from another account.
C) The friend must wait for probate before receiving any money.
D) The friend receives £3,000, and the remaining £2,000 is paid from the general estate.
D) The friend receives £3,000, and the remaining £2,000 is paid from the general estate.
Explanation: A demonstrative legacy is paid first from the specified source but is topped up from the general estate if the fund is insufficient.
A testator’s will states: “I GIVE my Rolex watch to my son, Jack.” However, at death, the watch has been stolen and was not replaced. What happens?
A) Jack receives an equivalent watch.
B) The estate must compensate Jack.
C) The gift fails due to ademption.
D) Jack can claim part of the estate.
C) The gift fails due to ademption.
Explanation: Ademption applies if a specific gift no longer exists at death. Jack receives nothing unless the will provides a substitute.
A will states: “I GIVE £10,000 from my Nationwide savings account to my niece.” At death, the account has only £4,000. What happens?
A) The gift fails.
B) The niece gets only £4,000.
C) The niece receives £10,000, with the shortfall made up from the general estate.
D) The executor decides how much to pay.
C) The niece receives £10,000, with the shortfall made up from the general estate.
Explanation: A demonstrative legacy is paid from the specified account first; any shortfall comes from the general estate.
A testator leaves their car to their brother. They later replace it with a different model but do not update their will. What happens to the gift?
A) The brother receives nothing due to ademption.
B) The brother receives the replacement car.
C) The executor sells the car and distributes the money.
D) The executor must buy a similar car for the brother.
B) The brother receives the replacement car.
Explanation: If the will includes wording like “or any replacement vehicle”, the gift includes the replacement car. Without such wording, ademption applies.
If a residuary gift fails, what happens to the undistributed assets?
A) They pass under the intestacy rules.
B) The executor decides who inherits.
C) The beneficiaries share equally.
D) The court divides the assets based on fairness.
A) They pass under the intestacy rules.
Explanation: If no residuary clause exists or it fails, the intestacy rules apply, leading to partial intestacy.
A will states: “I GIVE my house to my son, Paul.” The house has a £200,000 mortgage at the testator’s death. Who is responsible for the mortgage?
A) Paul inherits the house free of the mortgage.
B) The executor must repay the mortgage before transferring the house.
C) Paul inherits the house subject to the mortgage unless the will states otherwise.
D) The mortgage lender must forgive the debt.
C) Paul inherits the house subject to the mortgage unless the will states otherwise.
Explanation: Gifts of real property are generally subject to existing mortgages, unless the will states the estate should clear the debt.
If a residuary gift fails, what happens to the undistributed assets?
A) They are distributed according to the intestacy rules.
B) The executor chooses who inherits.
C) The assets pass to the next closest family member.
D) The court decides how to distribute the assets.
A) They are distributed according to the intestacy rules.
Explanation: A failed residuary gift results in partial intestacy, meaning the remaining assets pass under intestacy laws.
A testator leaves a gift of “all my jewelry” to his sister. The executor finds multiple jewelry boxes containing mixed items. What happens?
A) The entire collection is given to the sister.
B) The gift fails due to uncertainty.
C) The executor must interpret the will based on context.
D) The executor should divide the jewelry fairly among all beneficiaries if the will does not provide guidance.
D) The executor should divide the jewelry fairly among all beneficiaries if the will does not provide guidance.
Explanation: If a specific gift in a will lacks clarity, and there are multiple claimants, the executor may distribute the items fairly unless the will provides clear instructions. Courts will typically intervene only if disputes arise.
