Ademption-failure legacies and gift residue-executorship, Financial Accounting


If property which has been specifically bequeathed does not belong to the testator at the time of his death, or has been converted into property of a different kind, the gift cannot take effect by reason of the subject of the gift having been withdrawn from the operation of the will; where a gift fails on this account, it is said to be "adeemed". There must be a substantial change in the subject of a specific legacy to cause ademption and a merely nominal change shall not have that effect.

The gift of an interest in a fund shall not be adeemed by any sale or change of investment of the fund by the persons having control thereof, nor shall it be adeemed by the testator receiving it before his death, whether or not thereafter sold or re-invested by him, if it can at his death be followed and distinguished.

A demonstrative legacy is not adeemed if the property on which it is charged by the will does not exist at the time of the death of the testator, or has been converted into the property of a different kind; in these cases, it is paid out of the general estate of the testator.

Where a testator makes a gift by will to any person for a specific purpose, or to any child or other person to whom he stands in loco parentis (i.e. in the place of that person's parent) by way of portion ("portion" means provision by a parent or person in loco parentis to establish a child in life) and after the date of execution of the will, provides by deed or settlement or otherwise for the same purpose or by way of portion for the same child or other person, there shall be a presumption that the gift is adeemed by the subsequent provision, so far as the subsequent provision extends.

Posted Date: 12/13/2012 4:41:08 AM | Location : United States

Related Discussions:- Ademption-failure legacies and gift residue-executorship, Assignment Help, Ask Question on Ademption-failure legacies and gift residue-executorship, Get Answer, Expert's Help, Ademption-failure legacies and gift residue-executorship Discussions

Write discussion on Ademption-failure legacies and gift residue-executorship
Your posts are moderated
Related Questions
What are the Advantage of limited liability Advantage of limited liability, though, imposes certain obligations on such companies. To start up a limited company, documents of i

Accounting concepts The word 'Accounting Concept' is used to denote necessary assumptions and ideas which are basic to accounting practice. The variety of accounting concepts i

What Accounting method (cash or accrual) would you recommend for the following businesses? a. A gift shop with average annual gross receipts of $900,000 b. an accounting partnershi

What happens to capital when a project is completely funded by retained earnings?

Inter Company balances One of the companies may appear as receivable (debtor) or payable (creditor) in the other company’s books. Just like in accounting four branches, such in

RECEIVERSHIPS: APPOINTMENT OF RECEIVER If a company defaults in payment of principal or interest, or otherwise defaults in observing the conditions contained in debentures issu

Q. What do you mean by Auditors Report? Auditors' Report - Written communication issued by an independent CERTIFIED PUBLIC ACCOUNTANT (CPA) describing the character of her or h

does closing balance of cash flow statement equals to cash in balance sheet

Sleek Ride, a company providing limo services, has a December 31 year-end date. For Sleek Ride, the following transactions occurred during the ?rst 10 days of June: a. Purchased, o

Q. Net present value evaluation of proposed investment? WORKINGS Fixed costs = 4·50 × 100000 = $450000 per year Annual writing down allowance = 3000000/10 = $300000