Ademption and Abatement Interactions
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?
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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?
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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.
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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?
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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?
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