We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
What is a Lapsed Gift? Exploring Its Legal Definition and Impact
Definition & Meaning
A lapsed gift refers to a situation where a gift specified in a will becomes invalid because the intended recipient dies before the person who made the will (the testator). In simpler terms, if the person you intended to give something to passes away before you do, that gift is considered lapsed and will not be given. Instead, it typically becomes part of the remaining estate and is distributed according to the will's residuary clause or, if none exists, according to state laws governing inheritance.
Table of content
Legal Use & context
Lapsed gifts are primarily relevant in the context of estate planning and probate law. They are important in determining how an estate is distributed after a person's death. When creating a will, individuals should consider the possibility of lapsed gifts and how they will be handled. Users can manage this aspect of estate planning with legal templates from US Legal Forms, which can help ensure that their wishes are clearly documented and legally binding.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: If a testator leaves a car to their friend, but the friend dies before the testator, the gift of the car lapses. If the will has a residuary clause, the car would be distributed according to that clause.
Example 2: (hypothetical example) A testator names a charity in their will to receive a donation. If the charity ceases to exist before the testator's death, the donation would lapse and be handled according to the will's residuary clause.
Relevant laws & statutes
One notable statute regarding lapsed gifts is Rev. Code Wash. (ARCW) § 11.12.120, which outlines the procedures and proof required for handling lapsed gifts in Washington State. This statute clarifies how lapsed gifts are treated within the context of estate distribution.
State-by-state differences
State
Handling of Lapsed Gifts
Washington
Follows ARCW § 11.12.120 for distribution of lapsed gifts.
California
Generally follows the principle of lapsed gifts falling into the residue unless otherwise specified.
New York
Also allows lapsed gifts to fall into the residue or be distributed according to intestacy laws if no clause exists.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Lapsed Gift
A gift that becomes invalid because the recipient dies before the testator.
Abated Gift
A gift that is reduced or eliminated due to insufficient assets in the estate.
Residuary Gift
A gift that includes the remainder of the estate after specific gifts have been distributed.
Common misunderstandings
What to do if this term applies to you
If you are dealing with a lapsed gift in a will, it's important to review the will's terms and understand how the gift will be handled. You may want to consult with a legal professional for personalized advice. Additionally, consider using US Legal Forms to access templates that can help you create or modify a will to clarify your intentions regarding gifts.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.