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 Gift fails (lapses) because beneficiary dies before testator.

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Presentation on theme: " Gift fails (lapses) because beneficiary dies before testator."— Presentation transcript:

1

2  Gift fails (lapses) because beneficiary dies before testator.

3  1. Under express terms of will.

4  1. Under express terms of will. § 68(e).  2. Saved by legal rule.  Private Gift – Anti-lapse statute  Charitable Gift – Cy pres doctrine

5  1. Under express terms of will.  2. Saved by legal rule.  3. Via residuary clause. § 68(b).

6  1. Under express terms of will.  2. Saved by legal rule.  3. Via residuary clause.  4. Via intestacy. § 68(d).

7  1. Save gift for descendants of deceased beneficiary.

8  2. Jurisdictions vary regarding relationship needed between testator and beneficiary to trigger anti-lapse statute.

9  1. Beneficiary is descendant of  Testator, or  Testator’s parent.

10  2. Beneficiary physically or legally dies before testator.  Biological death first.  Biological death within 120 hours.  Disclaims within 9 months of death.

11  3. Beneficiary left a surviving descendant.

12  4. Beneficiary’s descendant outlives testator by 120 hours.

13  5. Gift then passes to beneficiary’s descendants per capita with representation.

14  6. Ways to avoid:  Provide alternate gift in will.  Require survival in will.

15  Fact Pattern:  “I leave remainder of my estate to A, B, and C.”  A dies before Testator.  Anti-lapse statute is inapplicable.  Issue:  Who gets A’s share?

16  Orthodox View  Swearingen v. Giles – p. 168  Passes by intestacy.

17  Modern View  § 68(c).  Imply survivorship language.

18  “I leave $10,000 to A and B.”  “I leave remainder to C and D.”  A and C predecease testator.  Assume A and C are not related to testator.

19  Method of saving lapsed charitable gifts.  Testator must have general charitable intent.  Gift saved for equitably equivalent charity.


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