Effect of different types of gift (The interpretation of Wills)- FS Flashcards
(15 cards)
What are the two fundamental categories of gifts made in a will?
Gifts in a will are classified as either devises (gifts of real property) or legacies (gifts of personal property).
What is a devise and who is the recipient of this type of gift?
A devise is a gift of realty (land or property), and the beneficiary is called the devisee.
What is a legacy and who is the recipient of this type of gift?
A legacy (also called a bequest) is a gift of personal property (non-land assets), and the beneficiary is called a legatee.
What defines a general legacy in a will?
A general legacy is a gift of property identified by description but not by specific reference; it is not tied to a particular item owned by the testator.
What happens if the testator dies without owning an item named in a general legacy?
The executor may purchase the item using estate funds to satisfy the bequest to the beneficiary.
What is a specific legacy and how does it differ from a general legacy?
A specific legacy refers to a clearly identified item of personal property; if the testator does not own the item at death, the gift fails.
What is a specific devise and when is this term used?
A specific devise is a gift of specifically identified real property (land or buildings) under a will.
Define a demonstrative legacy in the context of wills.
A demonstrative legacy is a hybrid gift that is general in nature but directed to be paid from a particular fund or asset source.
How does a pecuniary legacy differ from a demonstrative one?
A pecuniary legacy is a gift of a fixed sum of money with no specified source, while a demonstrative legacy specifies the fund from which the money is to be paid.
What happens if the specified fund in a demonstrative legacy is insufficient?
The balance is paid out of the general estate, as the demonstrative legacy is partly general in character.
What is a gift of residue?
The residuary estate is what remains after all debts, taxes, costs, and specific, general, demonstrative, and pecuniary gifts have been fulfilled.
What occurs if no provision is made for the residuary estate in the will?
Any unallocated part of the estate will pass according to the statutory intestacy rules.
Which type of gift is created when a testator leaves a large sum of money, such as £200,000, without stating its source?
This is classified as a pecuniary legacy.
If a testator leaves a gift of “100 shares in Tesla Ltd.” without identifying which shares or account, what type of legacy is it?
This is a general legacy because the gift is of a type and not a specific identifiable asset.
How are a house, a Ferrari, and £200,000 classified respectively under the categories of gifts in a will?
The house is a specific devise, the Ferrari is a specific legacy, and the £200,000 is a pecuniary legacy.
