Legacies & residuary gifts Flashcards
(12 cards)
what is a legacy/bequest?
= a gift of a particular sum/asset
what are the types of legacy?
specific
general
demonstrative
what is a specific legacy and devise?
legacy = a gift of defined/identifiable personal property
devise = gift of defined/identifiable realty
what indicates a gift is a specific legacy/devise?
‘my…’ or other possessive word indicates specific gift
what happens if the gift is not specifically defined and identifiable?
If there is ambiguity:
o Executors and Bs need to reach an agreement; or
o Apply to the court for construction of the Will (courts tend to construe as a general gift)
what happens if T no longer owns the specific legacy/devise at death?
If T no longer possesses the property at death, the legacy/devise will adeem.
what is a general legacy? give an example
a gift of money (pecuniary legacy) or non-specific property
i.e. ‘100 shares’ = general / ‘my 100 shares = specific’
what happens if a general legacy isn’t part of T’s estate at death? give examples
the executors must acquire it i.e.:
o T gifts £10k, but there isn’t £10k in the estate - assets must be sold to pay gift
o T gifts ‘an orange vase’ - if T doesn’t own an orange vase, the executors must acquire one
is a general legacy at risk of ademption? what is the drawback of general legacies?
cannot be adeemed but are used to pay debts before specific legacies
what is a demonstrative legacy? give examples
a legacy payable from a particular fund, i.e.:
o ‘100 shares in A to be funded from the sale proceeds of my house’
o ‘£3,000 to be paid from my capital in Smiths Ltd’
can a demonstrative legacy be adeemed?
no
what is a residuary gift? give example wording
gifts of the remainder of the estate after all debts, expenses, taxes & legacies paid
Example wording
- ‘what shall be left/remains’
- ‘residue’
- ‘all my personal estate’
