Legal Definitions - caducary

The term caducary describes a situation where an inheritance, a gift specified in a will (a bequest), or an estate is at risk of being lost or taken back due to certain legal circumstances. These circumstances typically involve the property either reverting to the state (known as escheat), failing because the intended recipient cannot receive it (known as lapse), or being forfeited for other legal reasons.

Here are a few examples to illustrate this concept:

• Imagine a wealthy individual, Mr. Henderson, drafts a will leaving a significant sum of money to his beloved nephew, David. However, David tragically passes away several months before Mr. Henderson. In this scenario, the bequest to David is considered caducary. Because David is no longer alive to receive the inheritance, the gift will likely "lapse" and either pass to a different beneficiary named in the will as a backup, or become part of the remaining estate to be distributed according to other provisions, rather than going to David's own heirs.

• Consider an elderly woman who lives alone and passes away without a will. Despite extensive searches, no living relatives or legal heirs can be identified. In this situation, her entire estate, including her home and bank accounts, is deemed caducary. Without any legal heirs to claim it, the property is subject to escheat, meaning it will legally revert to the state government.

• A will specifies that a valuable antique collection will be given to a local museum, but only on the condition that the museum constructs a new wing to house the collection within five years of the testator's death. If the museum fails to meet this specific condition within the stipulated timeframe, their right to the collection is caducary. The collection would then be forfeited by the museum and would typically pass to an alternate beneficiary named in the will or become part of the residuary estate.