1 / 19

Lapse

Lapse. Lapse defined. Gift fails (lapses) because beneficiary dies before testator. Distribution of Lapsed Gifts -- Overview. 1. Under express terms of will. Distribution of Lapsed Gifts -- Overview. 1. Under express terms of will. § 68(e). 2. Saved by legal rule.

havard
Télécharger la présentation

Lapse

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lapse

  2. Lapse defined • Gift fails (lapses) because beneficiary dies before testator.

  3. Distribution of Lapsed Gifts -- Overview • 1. Under express terms of will.

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

  5. Distribution of Lapsed Gifts -- Overview • 1. Under express terms of will. • 2. Saved by legal rule. • 3. Via residuary clause. § 68(b).

  6. Distribution of Lapsed Gifts -- Overview • 1. Under express terms of will. • 2. Saved by legal rule. • 3. Via residuary clause. • 4. Via intestacy. § 68(d).

  7. Anti-Lapse Statutes -- Generally • 1. Save gift for descendants of deceased beneficiary.

  8. Anti-Lapse Statutes -- Generally • 2. Jurisdictions vary regarding relationship needed between testator and beneficiary to trigger anti-lapse statute.

  9. Texas Anti-Lapse -- § 68 • 1. Beneficiary is descendant of • Testator, or • Testator’s parent.

  10. Texas Anti-Lapse -- § 68 • 2. Beneficiary physically or legally dies before testator. • Biological death first. • Biological death within 120 hours. • Disclaims within 9 months of death.

  11. Texas Anti-Lapse -- § 68 • 3. Beneficiary left a surviving descendant.

  12. Texas Anti-Lapse -- § 68 • 4. Beneficiary’s descendant outlives testator by 120 hours.

  13. Texas Anti-Lapse -- § 68 • 5. Gift then passes to beneficiary’s descendants per capita with representation.

  14. Texas Anti-Lapse -- § 68 • 6. Ways to avoid: • Provide alternate gift in will. • Require survival in will.

  15. Partial Lapse in Residuary Clause • 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. Partial Lapse in Residuary Clause • Orthodox View • Swearingen v. Giles – p. 168 • Passes by intestacy.

  17. Partial Lapse in Residuary Clause • Modern View • § 68(c). • Imply survivorship language.

  18. Problem 4, p. 170 • “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. Cy Pres • Method of saving lapsed charitable gifts. • Testator must have general charitable intent. • Gift saved for equitably equivalent charity.

More Related