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

Assignment Help:

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into property of a different kind, the gift cannot take effect by reason of the subject of the gift having been withdrawn from the operation of the will; where a gift fails on this account, it is said to be "adeemed".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


Related Discussions:- Causes of failure of legacies and gifts of residue

Combined income statement-branches, Combined income statement The figur...

Combined income statement The figures to appear in the combined income statement are based on the following diagram: 1) An arrow pointing into a box refers to purchase

Distribution under the intestacy provisions, DISTRIBUTION UNDER THE INTESTA...

DISTRIBUTION UNDER THE INTESTACY PROVISIONS When a person dies without leaving a will, his estate is distributed according to the Law of Succession Act. When a person dies, fou

What would be the consequences to zorn, zorn conducted his professional pra...

zorn conducted his professional practice through zorn, inc. the corporation uses a fiscal year ending september 30 even though the business purpose test for a fiscal year cannot be

What kinds of business ownership exist, What kinds of business ownership ex...

What kinds of business ownership exist? Particular form of business ownership has significant implications for accounting purposes and so it's useful to be clear about the main

Stock turnover rate, Calculate  Stock turnover rate The total ave...

Calculate  Stock turnover rate The total average number of times each year which stocks is "turned over" in the terms and course of trading activity. Stock turnover rate

Statement of cash flow, under gaap, are proceeds from capital lease obligat...

under gaap, are proceeds from capital lease obligation reported in the statement of cash flow and why

Income statement, depreciation in question is given more and in adjustment ...

depreciation in question is given more and in adjustment is less. What would be in the profit and loss account?

The common stock of warner inc, The common stock of Warner Inc. is currentl...

The common stock of Warner Inc. is currently selling at $114 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share

Accounting and finance, I want you guys to make my assignment of 2500 words...

I want you guys to make my assignment of 2500 words please let me know the price and I din''t have time I want it by tomorrow

The american institute of cpas'' (aicpa), Describe:-1. Compare the American...

Describe:-1. Compare the American Institute of CPAs' (AICPA) Statements on Tax Standards (SSTS) and the Treasury Department Circular 230 rules to practice before the Internal Reven

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd