What Is Ademption?

Ademption refers to the situation in which a specific bequest (gift) in a will cannot be fulfilled because the item no longer exists or is no longer owned by the testator (the person who made the will) at the time of their death. As a result, the intended beneficiary does not receive the item or its equivalent.

Ademption Explained

Ademption primarily occurs in the context of specific bequests within a will. A specific bequest is a gift of a particular item or a specified amount of money from a particular source.

For example, a testator might leave a specific piece of jewelry or a particular stock to a beneficiary. If, at the time of the testator's death, the specific item no longer exists or has been disposed of, the bequest is said to have adeemed.

Types of Ademption:

1. Ademption by Extinction: This occurs when the specific item bequeathed is no longer part of the testator's estate because it has been sold, given away, destroyed, or otherwise disposed of. For example, if the testator leaves a car to a beneficiary but sells the car before death, the bequest is adeemed by extinction, and the beneficiary receives nothing in place of the car.

2. Ademption by Satisfaction: This occurs when the testator gives the specific item or equivalent value to the beneficiary during their lifetime, with the intent that it replaces the bequest in the will. For example, if the testator bequeaths $10,000 to a beneficiary in the will but gives the beneficiary $10,000 during their lifetime, the bequest is adeemed by satisfaction.

Legal Implications of Ademption

Ademption by extinction typically results in the beneficiary receiving nothing if the specific bequest is no longer part of the estate. Courts generally do not substitute another item or the value of the item unless the will indicates such an intention.

Ademption by satisfaction involves the testator providing the gift during their lifetime, reducing or eliminating the bequest from the will. This is usually effective only if there is clear evidence that the lifetime gift was intended to replace the testamentary gift.

Exceptions and Considerations

Some jurisdictions recognize exceptions to ademption. For instance:

- If the item was sold by a guardian or conservator managing the testator’s assets, the proceeds from the sale might still be given to the beneficiary.

- If the item is converted to a different form (e.g., a property is sold and the proceeds are used to buy another property), courts might consider whether the new item should be given to the beneficiary.

The Term Ademption in Different Legal Contexts

Estate Planning: Estate planning often addresses the risk of ademption by advising testators to review and update their wills regularly to reflect current ownership of assets. Legal professionals may recommend using general or residuary bequests instead of specific bequests to avoid ademption issues.

Trust Law: In the context of trusts, ademption can occur similarly if the trust's terms include specific bequests that are no longer available. Trustees must be aware of the status of specific gifts and manage the trust's assets accordingly to ensure the terms of the trust are fulfilled as intended.

Probate Law: During probate, executors or personal representatives must identify and manage the testator’s assets to ensure that the terms of the will are executed correctly. Understanding ademption is crucial in determining which bequests can be fulfilled and which cannot.

Common Misconceptions About the Meaning of Ademption

A common misconception about ademption is that beneficiaries can always receive the value of the adeemed item. However, ademption by extinction typically means that the beneficiary gets nothing unless the will explicitly provides for an alternative or substitution.

Another misconception is that ademption only applies to physical items. Ademption can affect any specific bequest, including stocks, bonds, bank accounts, or other identifiable assets mentioned in a will.

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What Is Ademption?

Ademption Explained

The Term Ademption in Different Legal Contexts

Common Misconceptions About the Meaning of Ademption

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