Gifting someone a specific property in your will is known as a specific bequest, and the wording of these can be a problem. We see some horrible will provisions, even in attorney-drafted wills, that do not fulfill the decedent’s specific bequest. The problem occurs because a specific gift in a will, of a specific property, lapses if that property no longer exists. That makes sense if you are gifting a 3-carat diamond ring or a particular classic Ford Mustang. It doesn’t make sense if what you are gifting is a bank account, an investment account, your current vehicle, or your current home.
Often, it is the decedent’s intent to leave a specific amount of money or specific percentage of an estate to an heir, but if the will identifies a particular account, a particular car, or a particular home, those gifts fail when that exact asset no longer exists because the funds were moved to a new broker or the old car or house were sold. The beneficiary does not get a replacement; instead, it is assumed the gift was only of that particular item and when it does not exist, the total gift lapses.
Attorneys who are not experienced in drafting estate planning, and people who do online or home-cooked wills, often make these drafting errors that fatally defeat the plans of the drafter of the will. At Pyke & Associates, we are experienced estate planners who concentrate our practice in this area, along with related fields of probate, guardianship and Medicaid planning. Review your will to make sure it achieves your goals!
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.
