Legal Definitions - ambulatory disposition

An ambulatory disposition refers to a legal instruction or arrangement that is not final and can be changed, amended, or revoked by the person who made it, typically until a specific future event occurs, most commonly their death. The term "ambulatory" implies that the disposition is not fixed but rather "moves" or can be altered during the maker's lifetime.

Here are some examples to illustrate this concept:

• Example 1: A Last Will and Testament

  Imagine a person named Robert who drafts a will stating that his entire coin collection should be given to his grandson, Alex. This instruction is an ambulatory disposition. Robert can decide at any point before his death to change his will. He might update it to give the collection to a different family member, sell the collection, or even decide to donate it to a museum. The gift to Alex is not legally finalized or irreversible until Robert passes away, and until then, Robert retains full control to alter his wishes.

• Example 2: A Revocable Living Trust

  Consider Maria, who sets up a revocable living trust to manage her assets. Within this trust, she specifies that upon her death, her vacation home will be transferred to her two daughters, equally. This provision within the trust is an ambulatory disposition. As long as Maria is alive and competent, she has the power to amend the trust. She could change the beneficiaries, alter the distribution percentages, or even revoke the entire trust if her circumstances or intentions change. The final transfer of the vacation home is not set in stone until Maria's death.

• Example 3: Beneficiary Designation on a Life Insurance Policy

  Sarah purchases a life insurance policy and names her brother, Michael, as the sole beneficiary. This designation of Michael as the recipient of the policy's proceeds is an ambulatory disposition. Sarah can, at any time during her lifetime, contact her insurance company and change the beneficiary to someone else, such as her spouse, a child, or a different relative, without needing Michael's consent. The instruction for who receives the funds upon her death is not fixed and can be altered by Sarah until her passing.