What is a Contingent Legacy? A Comprehensive Legal Overview

Definition & meaning

A contingent legacy is a type of inheritance that is dependent on a specific condition being met. In this case, the legacy is granted to a person who must reach the age of twenty-one to receive it. If the individual passes away before reaching this age, the legacy does not go to their heirs and is considered lapsed. However, the person who created the will, known as the testator, can prevent this lapse by clearly stating their intention and naming an alternate beneficiary.

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Real-world examples

Here are a couple of examples of abatement:

(hypothetical example) John creates a will that includes a contingent legacy for his niece, Sarah. She will receive a sum of money when she turns twenty-one. If Sarah dies before her birthday, the money will not go to her estate unless John specifies an alternative beneficiary in his will.

State-by-state differences

Examples of state differences (not exhaustive):

State Contingent Legacy Rules
California Allows contingent legacies with clear conditions stated in the will.
New York Similar rules apply, but requires specific language to prevent lapsing.
Texas Contingent legacies are recognized; however, the testator must name an alternate beneficiary.

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 Legacy A legacy dependent on a condition, such as reaching a certain age. Specific to conditions; lapses if conditions are not met.
Absolute Legacy A legacy that is given outright without conditions. Does not depend on any conditions; goes directly to the beneficiary.

What to do if this term applies to you

If you are considering creating a will with contingent legacies, it's essential to clearly outline your intentions and specify any alternate beneficiaries. Using legal form templates from US Legal Forms can help streamline this process. If your situation is complex, seeking professional legal advice may be beneficial to ensure your wishes are accurately reflected in your will.

Quick facts

  • Typical age for contingent legacies: Twenty-one years old.
  • Common legal area: Estate planning and probate law.
  • Potential issues: Legacy lapsing if conditions are not met.

Key takeaways

FAQs

The legacy lapses and does not pass to the beneficiary's heirs unless the testator has named an alternate beneficiary.