ADEMPTION
What happens if you leave you a specific piece of property in your will or trust (referred to as a specific bequest), but you do not own the property when you die?
This legal issue is referred to as “ademption”. The answer changes depending on why you no longer own the property and who got rid of it.
If you gave the property to the beneficiary while you were alive, that is referred to as “Ademption by satisfaction”. In this case, the beneficiary received the property, just a little earlier than originally anticipated. Everyone should be happy!
If you sold or otherwise got rid of the property while you were alive, or you knew your agent sold it on your behalf, this is referred to as “ademption by extinction”. In this case the gift would fail and the beneficiary would have no further claim against your estate.
If the property is sold or given away while you were alive but not in control of your assets (typically due to incapacity), the gift is not considered adeemed. The theory behind this is that you still intended to give this gift and someone else stepped in and prevented it. In this case, the beneficiary is typically entitled to the value of the property from your estate.
If you need guidance on how to gift a specific asset from your estate, email us at info@weeselawfirm.com or call us at 913-706-8491.
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