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


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into property of a different kind, the gift cannot take effect by reason of the subject of the gift having been withdrawn from the operation of the will; where a gift fails on this account, it is said to be "adeemed".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
The following items represent liabilities on a firm's balance sheet: a. An amount of money owed to a supplier based on the terms 2/20, n/40, for which no note was executed. b. An a

Determine the Features of Accounting information system Accounting information system must have certain features which are common to all valid information systems within a bus

Q. Required return on equity? Required return on equity Where D 1 = Next year's dividend g = Dividend growth rate P o = Market price of share r = Percentag

Accounting policies Accounting policies are the specific assumptions, bases, principles and practices that are adopted by firms in preparing financial statements. The standard

FORMAT FOR BALANCE SHEET The non current assets, current assets and current liabilities sections remain identical to those of a sole proprietorship.  However, the “capital sect

The real risk-free rate is 2%. Inflation is expected to be 2% this year and 5% during the next 2 years. Suppose that the maturity risk premium is zero. What is the yield on 2-ye

State the Accounting as an information system We know that accounting can be seen as provision of a service to 'clients'. Another way of viewing accounting is as a part of busi

Evaluating the investment using return on capital employed: Annual depreciation charge = 1500000/5 = $300000 Average investment = 1500000/2 = $750000 Average annual

Dividends out of the capital profits Dividends out of the capital profits are apportioned on the same basis as dividends out of income (Re. Doughty). (a) Variation of sec

When Lydia started her vending machine business, she instituted flexible budgeting for the first few months of operations. Her first monthly budget numbers were these: Cost of g