Changes to Will Beneficiaries and property

Question 1

Lapse

Answer 1

A gift under a will to a deceased beneficiary is said to lapse. However, Anti lapse might apply

Question 2

When does Anti lapse apply ?

Answer 2

When the beneficiary is a grandparent or a descendant of a grandparent

Question 3

Anti Lapse and class gift

Answer 3

If a testator makes a class gift and on member of the class predeceases the testator, and anti lapse does not apply, the remaining members of the class share the gift

Question 4

How is a residuary to multiple people get treated ?

Answer 4

Like a class gift

Question 5

What happens when a gift lapses and anti lapse does not apply ?

Answer 5

If anti-lapse does not apply and the gift is not a class gift, the gifts to a deceased beneficiary lapse into the residue

Question 6

When the specific purpose of a gift to charity cannot be achieved (or charity gone)

Answer 6

the court may invoke the doctrine of cy pres to reform the gift to carry out the general intent of the testator

Question 7

When a spouse is omitted from a premarital will

Answer 7

The spouse will receive an intestate share of the testator’s estate unless the omission was intentional

Question 8

If child born after the will is executed and at the time the will was executed the testator has no living children

Answer 8

The after born children are entitled to an intestate share

Question 9

If child born after the will is executed and at the time the will was executed the testator had living children

Answer 9

The after born children are entitled to the lesser of
1. an intestate share or
2. the largest amount any other child receives under the will

Question 10

Doctrine of Ademption by Extinction

Answer 10

If specific property of a specific devise is gone, that device is adeemed and the devisee has no interest in the specific property

“identity theory” - ask if specifically devised property is part of the decedent’s estate

Question 11

When does the The doctrine of Ademption by Extinction not apply ?

Answer 11

It does not apply to general devises or bequests

Question 12

When to exceptions to ademption by extinction apply ?

Answer 12

They apply unless a contrary intention is in the will

Question 13

What are the 3 exceptions to ademption by extinction

Answer 13

1. Bequests of specific securities include other securities of the same entity acquired by reason of action initiated by the entity (merger, stock split)
2. Condemnation award or insurance proceeds for taking/damage of specifically devised property still unpaid at death.
3. Net value of specifically devised property/sold/destroyed and covered by insurance while the testator is legally incapacitated

Question 14

Ademption by satisfaction of general pecuniary bequests

Answer 14

A lifetime gift may addem a beneficiary’s interest by satisfaction if:
1. Will expressly deducts lifetime gift,
2. Contemporaneous writing by the testator states that the gift is in satisfaction; or
3. Devisee acknowledges the gift is in satisfaction in writing

Question 15

Exoneration of liens reversed by VA statue

Answer 15

Unless a contrary intent appears in the will, a specific bequest or devise remains subject to liens existing at the death of the testator, a general directie in the will to pay debts is not evidence of a contrary intent

Question 16

Abatement

Answer 16

Determines the order in which bequests/devises are reduced when the estate is not sufficient to cover all of them
1. Personal property abates before real property
2. Real property abates only if personal property is insufficient to pay

Question 17

What is the order of abatement for personal property ?

Answer 17

1. Property passing by intestacy
2. Property passing under the residue of the will
3. General bequets
4. Demonstrative bequests
5. Specific bequests