Legal Definitions - ademption by extinction

Ademption by extinction occurs when a specific item of property that was promised to someone in a will can no longer be given to that person. This happens because the specific item no longer exists or is no longer owned by the person who made the will (known as the "testator") at the time of their death.

When a gift is "adeemed by extinction," the intended recipient (the beneficiary) does not receive the item, nor are they typically entitled to a substitute, such as the money from its sale or insurance proceeds. The specific gift simply fails because the property described in the will is no longer part of the testator's estate in the form it was specified.

Here are some examples to illustrate this concept:

• Example 1: Destroyed Personal Property

  Imagine that David's will states, "I give my rare collection of vintage comic books to my nephew, Liam." Years later, before David passes away, his house experiences a severe flood, and the entire comic book collection is completely destroyed and unsalvageable. When David dies, the specific collection of vintage comic books no longer exists. Because the unique item specified in the will has been destroyed and is no longer part of his estate, the gift to Liam is adeemed by extinction. Liam will not receive the comic books, nor will he receive any insurance payout David might have received for their loss, as the specific gift itself has ceased to exist.

• Example 2: Sold Real Estate

  Consider a will where Susan writes, "I leave my beachfront condominium in Florida to my sister, Carol." Several years later, Susan decides she no longer wants the responsibility of owning a vacation property and sells the condominium to a developer. When Susan passes away, she no longer owns the specific beachfront condominium mentioned in her will. Since the property designated for Carol was sold and is no longer part of Susan's estate, the gift is adeemed by extinction. Carol will not receive the condominium, nor will she be entitled to the money Susan received from its sale.

• Example 3: Non-Existent Financial Asset

  Suppose Mark's will includes the provision, "I bequeath my shares of Acme Corporation stock to my daughter, Emily." Before his death, Acme Corporation goes bankrupt, and all its stock becomes worthless and is delisted from the stock exchange. When Mark dies, the specific shares of Acme Corporation stock, as a valuable asset, no longer exist. Even though the will specified them, the asset itself has been extinguished due to the company's bankruptcy. Therefore, the gift to Emily is adeemed by extinction, and she will not receive any shares.