Changes & Death of Beneficiaries Lapse = Failed Gift (Beneficiary dies before testator) Result: If any portion of the residuary fails, the residuary absorbs the failed gift. If the entire residuary fails, then the gift passes through intestacy. Void Gifts = A gift is void when the beneficiary is dead at the time the will is executed, so it was void at the outset. BEQUESTS: Specific Bequest = Identifies the piece of property (i.e. I give my house to X and my watch to Y) If a specific gift fails, that property lapses and passes to the residuary; if the residuary fails, passes through intestacy. General Bequest = Gives a general bequest of money or by “my car” doesn't specify which car. Ex: give you 100 shares of At the time he “I apple stock.” executed the will and when he dies he has no apple stock. A general bequest imposes a duty on the executor to go out and buy 100 shares of stock—general bequest speaks to the hopes of the testator and that the executor is required to satisfy. If it's a mere general bequest and doesn't exist at death, treated as a direction. In a specific bequest, that doesn't exist at the time of death, the gift fails (Ademption). If general bequest money taken from the residue. Demonstrative Gift = A general gift, the source of which has been specified. give you $1k from my B of A “I account” Residuary Bequest: Everything else in the estate (residual) I.e., give the rest of my estate to give everything “I Fred”/ “I to LLS” If the residuary bequest fails in whole, drops to intestacy. Partial Residuary Bequest: If the residuary gift fails in part (T gives the residue of his estate to A and B; B predeceases T) Then two options: Common Law: Partially failed R passed through intestacy. CA APPROACH (Modern Trend) = Partially failed residuary gift passes with the rest of the residuary. CA Section 21-101: This applies to will, trust, deed, and any other instrument. WAYS TO SAVE A FAILED GIFT:::::
Changes & Death of Beneficiaries Lapse = Failed Gift (Beneficiary dies before testator) Result: If any portion of the residuary fails, the residuary absorbs the failed gift. If the entire residuary fails, then the gift passes through intestacy. Void Gifts = A gift is void when the beneficiary is dead at the time the will is executed, so it was void at the outset. BEQUESTS: Specific Bequest = Identifies the piece of property (i.e. I give my house to X and my watch to Y) If a specific gift fails, that property lapses and passes to the residuary; if the residuary fails, passes through intestacy. General Bequest = Gives a general bequest of money or “my car” by doesn't specify which car. Ex: “I give you 100 shares of apple stock.” At the time he executed the will and when he dies he has no apple stock. A general bequest imposes a duty on the executor to go out and buy 100 shares of stock—general bequest speaks to the hopes of the testator and that the executor is required to satisfy. If it's a mere general bequest and doesn't exist at death, treated as a direction. In a specific bequest, that doesn't exist at the time of death, the gift fails (Ademption). If general bequest money taken from the residue. Demonstrative Gift = A general gift, the source of which has been specified. “I give you $1k from my B of A account” Residuary Bequest: Everything else in the estate (residual) I.e., “I give the rest of my estate to Fred”/ “I give everything to LLS” If the residuary bequest fails in whole, drops to intestacy. Partial Residuary Bequest: If the residuary gift fails in part (T gives the residue of his estate to A and B; B predeceases T) Then two options: Common Law: Partially failed R passed through intestacy. CA APPROACH (Modern Trend) = Partially failed residuary gift passes with the rest of the residuary. CA Section 21-101: This applies to will, trust, deed, and any other instrument. WAYS TO SAVE A FAILED GIFT:::::
Wills-and-Trusts-Sliskovich-2015.docx