Legal Definitions - advancement

An advancement is a gift made by a person during their lifetime to an heir, intended to be counted against that heir's share of the estate upon the donor's death. This concept primarily applies when someone dies without a will (intestacy) to ensure a fair and equal distribution among all heirs.

An advancement refers to a gift of money or property that a person gives to an expected heir during their lifetime, with the specific intention that this gift will be considered an early distribution of that heir's inheritance. When the person who made the gift (the donor) passes away without a will (meaning they die "intestate"), the value of this advancement is typically added back into the total estate for calculation purposes. This ensures that the heir who received the advancement ultimately receives a smaller share of the remaining estate, thereby promoting fairness and equal distribution among all heirs according to state intestacy laws.

• Example 1: Funding a Down Payment for a Home

  Imagine Sarah, a mother of three adult children, gives her eldest son, David, $100,000 to help him with the down payment on his first home. Sarah explicitly states in a signed document that this money is an early distribution of his inheritance. Years later, Sarah passes away without a will, leaving an estate of $500,000 to be divided equally among her three children.

  How it illustrates the term: Because the $100,000 was designated as an advancement, it is added back to the estate for calculation purposes, making the "total" estate $600,000 ($500,000 + $100,000). Each child's equal share would then be $200,000. David, having already received $100,000, would receive an additional $100,000 from the remaining estate, while his two siblings would each receive $200,000. This ensures all three children ultimately receive an equal total inheritance of $200,000.

• Example 2: Capital for a New Business Venture

  Mr. Henderson, a retired entrepreneur, provides his granddaughter, Emily, with $50,000 to launch her new tech startup. He makes it clear to Emily and other family members that this substantial gift is intended to be part of her future inheritance. When Mr. Henderson dies intestate, his estate is valued at $450,000, to be divided among his grandchildren.

  How it illustrates the term: The $50,000 given to Emily for her business is treated as an advancement. For distribution purposes, the estate is considered to be $500,000 ($450,000 + $50,000). If there are five grandchildren, each would be entitled to $100,000. Since Emily already received $50,000, she would receive an additional $50,000 from the remaining estate, while the other four grandchildren would each receive their full $100,000, maintaining fairness in the distribution.

• Example 3: Paying Off Significant Debt

  Maria, a single mother, helps her son, Carlos, by paying off his $75,000 medical debt. She documents this payment as an advancement, intending it to reduce his share of her estate upon her death. Years later, Maria passes away without a will, leaving an estate of $325,000 to be divided between Carlos and her daughter, Sofia.

  How it illustrates the term: The $75,000 debt payment is considered an advancement to Carlos. To calculate the shares, the total estate is conceptually $400,000 ($325,000 + $75,000). Each child's equal share would be $200,000. Since Carlos already received $75,000, he would receive $125,000 from the remaining estate, while Sofia would receive her full $200,000. This ensures both children receive an equivalent total benefit from Maria's assets.