Causes of failure of legacies and gifts of residue, Financial Accounting

CAUSES OF FAILURE OF LEGACIES AND GIFTS OF RESIDUE

1) Ademption:
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into property of a different kind, the gift cannot take effect by reason of the subject of the gift having been withdrawn from the operation of the will; where a gift fails on this account, it is said to be "adeemed".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.

2) Uncertainty:
A gift or disposition not expressive of any definite intention shall be void for uncertainty, i.e A gift under a will fails where there is uncertainty as to:What is being given, To whom it is being given, or The quantity of the interest being given.

3) Disclaimer:
A beneficiary can always disclaim a legacy and probably would do so if the gift involves onerous conditions. He may also do so when he wishes to increase the share of residue passing to some other beneficiary.

4) Lapse:
If the legatee pre-deceases the testator, the gift fails; it is said to "lapse".

5) Gifts subject to an illegal condition:
A gift will fail if it has an illegal condition attached to it.

6) Gifts subject to a condition which is contrary to public policy:
Where a gift is subject to a condition which is contrary to public policy, the gift will not fail but the beneficiary will take without the condition.

7) Abatement:  In case the legacy is not adequate to meet all the dues of the beneficiaries, the dues will be reduced in proportion to what is available fro the legacy.

Posted Date: 12/13/2012 4:36:32 AM | Location : United States







Related Discussions:- Causes of failure of legacies and gifts of residue, Assignment Help, Ask Question on Causes of failure of legacies and gifts of residue, Get Answer, Expert's Help, Causes of failure of legacies and gifts of residue Discussions

Write discussion on Causes of failure of legacies and gifts of residue
Your posts are moderated
Related Questions
Question 1 What is accounting and book keeping? Explain the objectives of accounting? Question 2 Explain GAAP and write down the relationship between accounting principles, a

Suppose that the average firm in your company's industry is expected to grow at a constant rate of 4% and that its dividend yield is 8%. Your company is about as risky as the avera

Personal representatives duties Personal representation has the following duties; 1) To provide and pay out of the estate of the deceased, the expenses of a reasonable funeral

BFD Co has occurrence rapid growth in turnover since its formation three years ago but it has been unable to maintain net profit margin which has fallen from 19% in 2002 to 12% in

Please use the information below to complete Form 1120S and the Schedule K-1%u2019s for Form 1120S. Blank forms can be found on the Hands-On Assignment page or in Doc Sharing. If y


Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as tehy prepare and issue financial statements. Let's start by getting an understanding of wh

Calculation of the actuarial gain/losses in year to 31 December 2010 FV of plan assets PV of plan liabilities $000

Illustrations of retained profits brought forward H Ltd acquired 75% of the ordinary shares of S Ltd since S Ltd was incorporated. The Summarized income statement for the two c

GROUP STRUCTURES A group structure is the relationship between the holding company and its subsidiaries.  There are normally four main types of group structures (apart from the