Legal Definitions - accretion

In legal terms, accretion refers to a gradual increase or addition, typically occurring in two primary contexts: the slow, natural growth of land along a body of water, or an increase in a beneficiary's share within a trust or estate.

• Accretion of Land: This occurs when land bordering a river, lake, or ocean slowly expands due to the natural deposit of soil, sand, or sediment by the water's movement. This newly formed land legally becomes the property of the existing landowner.

  • Example: Imagine a family owns a beachfront property. Over several decades, ocean currents and tides slowly deposit sand along their shoreline, gradually extending the beach further into the water. This new strip of land, formed by the natural accumulation of sand, legally becomes part of the family's property.

    How it illustrates accretion: The family's property has slowly and naturally increased in size due to the ocean's action, and this newly formed land is legally added to their existing ownership.

• Accretion in Trusts and Estates: This happens when one beneficiary's share of assets within a trust or estate increases because another beneficiary is unable or unwilling to receive their portion. This can occur if a beneficiary fails to meet a specific condition, declines their inheritance, or passes away before they can claim it, and the governing document (like a will or trust) specifies that the unclaimed share should be distributed among the remaining beneficiaries.

  • Example 1: A grandparent's will establishes a trust to be divided equally among their three grandchildren upon reaching age 30, with the condition that each grandchild must have completed a master's degree. If one grandchild decides not to pursue a master's degree, and the will specifies that any unclaimed share should be re-divided among the others, the shares of the two grandchildren who met the condition would increase.

    How it illustrates accretion: The two compliant grandchildren receive a larger portion of the trust than originally intended because another beneficiary failed to meet a stipulated condition, causing their shares to "accrete" or grow.

  • Example 2: A charitable foundation is named as a beneficiary in a will, set to receive 20% of a large estate. However, by the time the estate is settled, the foundation has dissolved and no longer exists. If the will states that any portion not claimed by a named beneficiary should be distributed proportionally among the remaining beneficiaries, the other charities or individuals named in the will would see their shares increase.

    How it illustrates accretion: The remaining beneficiaries gain a larger share of the estate because the dissolved foundation was unable to claim its portion, leading to an increase in their individual distributions.