A lapsed legacy refers to a situation where a bequest in a will becomes ineffective because the intended recipient (legatee) dies before the testator (the person who made the will) or before the legacy is due to be paid. When a legacy lapses, the property typically reverts to the residual estate, which is the portion of the estate that remains after all debts, taxes, and specific bequests have been settled.
Lapsed legacies are primarily encountered in estate planning and probate law. They are relevant when determining how a deceased person's assets are distributed after their death. Understanding lapsed legacies helps ensure that wills are drafted clearly to avoid unintended outcomes. Users can manage their estate planning with the right tools, such as legal templates available through US Legal Forms, which are designed by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: If a testator leaves a sum of money to a friend in their will, but the friend dies before the testator, that money will lapse and may go to the testator's residual estate.
Example 2: A testator names a specific relative to inherit a family heirloom, but that relative passes away before the testator. The heirloom would then typically become part of the residual estate. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Details |
|---|---|
| California | In California, if a legatee dies, the legacy may pass to the legatee's descendants unless otherwise specified in the will. |
| New York | In New York, a lapsed legacy generally becomes part of the residuary estate unless the will specifies an alternative. |
| Texas | Texas law provides that if a legatee dies before the testator, the legacy lapses unless the will indicates otherwise. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Lapsed Legacy | A bequest that becomes ineffective due to the death of the legatee. | Occurs when the legatee dies before the testator. |
| Abated Legacy | A bequest that is reduced due to insufficient assets in the estate. | Occurs when the estate cannot fulfill all bequests. |
| Void Legacy | A bequest that is invalid from the outset, often due to lack of clarity. | Is ineffective from the beginning, not due to the legatee's death. |
If you are dealing with a lapsed legacy, consider reviewing the will to understand the implications for the estate. It may be beneficial to consult with a legal professional for guidance on how to proceed. Additionally, you can explore US Legal Forms for templates that can assist in estate planning and management.
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When a legacy lapses, it generally becomes part of the residual estate unless specified otherwise in the will.