Ademption and Abatement Self-Quiz

 

 

 

 

 

 

 

 

Suzy’s will bequeaths “my three-carat diamond and ruby ring to my daughter, Daisy”; “$10,000, to be paid out of the proceeds of the sale of my Texaco stock, to my son, Clarke.” Before her death, Suzy’s ring is stolen; and she sells all of her Texaco stock to finance the purchase of a new car. Neither of these assets is in Suzy’s estate at her death. Which gift is adeemed?
Choice 1 The $10,000 proceeds from the Texaco stock.
Choice 2 The three-carat diamond and ruby ring.
Choice 3 Both the $10,000 proceeds from the Texaco stock and the three-carat diamond and ruby ring.
Bryce’s will bequeaths $20,000 to his son, Franklin. In addition, he bequeaths his Federated stock and all bank deposits in his name to his grandchildren, Pascal and Sigmund. Shortly before his death, another son, Hector, withdraws all Bryce’s bank deposits to buy U.S. Treasury bonds as his agent. As a result, there is no longer any money on deposit to discharge the gift to Franklin and the gifts to Pascal and Sigmund. Which gift is adeemed?
Choice 1 The $20,000 to Franklin.
Choice 2 The Federated stock.
Choice 3 The bank deposits.
Cheryl made the following bequest in her will: “I devise to my sister, Penelope, the cabin I own in Montpelier, VT.” Two months before Cheryl died, the cabin and its contents were destroyed in a brush fire. The executor of Cheryl’s estate received $120,000 in insurance proceeds. Penelope is entitled to the $120,000.
True
False
Bryce’s will bequeaths $20,000 to his son, Franklin. In addition, he bequeaths $10,000 in bank deposits at a Chicago bank to his grandchildren, Pascal and Sigmund. To his other son, Hector, he leaves his residuary estate. Lastly, to his cousin, Phyllis, he leaves his vintage Mustang. His residuary estate is inadequate by $25,000 to pay all debts and expenses of his estate. Which gift abates first?

Choice 1 The vintage Mustang left to Phyllis.
Choice 2 The $10,000 in bank deposits left to Pascal and Sigmund.
Choice 3 The $20,000 left to Franklin.
Choice 4 The residuary estate left to Hector.
Bryce’s will bequeaths $20,000 to his son, Franklin. In addition, he bequeaths $10,000 in bank deposits at a Chicago bank to his grandchildren, Pascal and Sigmund. To his other son, Hector, he leaves his residuary estate. Lastly, to his cousin, Phyllis, he leaves his vintage Mustang. His residuary estate is inadequate by $25,000 to pay all debts and expenses of his estate. How much does Pascal receive?
Choice 1 $5,000.
Choice 2 $2,500.
Choice 3 Zero.

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