What is a Contingent Bequest? A Comprehensive Legal Overview

Definition & Meaning

A contingent bequest is a type of gift made in a will that only takes effect if a specific condition is met. In simpler terms, it means that the inheritance will not go to the intended recipient unless a certain event occurs. For example, if a person leaves money to a friend but states that the friend will only receive it if they outlive the testator, this is a contingent bequest. Unlike a vested bequest, which is guaranteed to be received at a future date, a contingent bequest relies on the occurrence of a specified condition.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A testator leaves a sum of money to their niece, stating that she will only receive it if she graduates from college within five years of the testator's death. This is a contingent bequest because the niece must meet the condition of graduating to receive the inheritance.

Example 2: A person bequeaths their house to a friend but specifies that the friend must live in the house for at least one year after the testator's death to claim ownership. This is another instance of a contingent bequest.

State-by-state differences

State Contingent Bequest Rules
California Allows contingent bequests but requires clear language to avoid ambiguity.
New York Similar to California, contingent bequests must be clearly defined in the will.
Texas Contingent bequests are valid, but the conditions must be lawful and not against public policy.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Contingent Bequest A gift that depends on a specific condition being met. Only takes effect if the condition occurs.
Vested Bequest A gift that is guaranteed to be received at a future date. Does not depend on any condition; the recipient is assured of the gift.

What to do if this term applies to you

If you are considering creating a contingent bequest, it is important to clearly outline the conditions in your will. You may want to consult with a legal professional to ensure that your intentions are properly documented. Additionally, you can explore US Legal Forms for templates that can help you draft a will that includes contingent bequests.

Quick facts

  • Type: Conditional inheritance
  • Legal Context: Estate planning, wills, trusts
  • Requirement: Clear conditions must be stated
  • Comparison: Differs from vested bequests, which are guaranteed

Key takeaways