Legal Definitions - demonstrative bequest

A demonstrative bequest is a type of gift made in a will where a specific amount of money or a certain quantity of property is given, and the will also specifies a particular source from which this gift should be paid. A key characteristic of a demonstrative bequest is that if the designated source is insufficient or no longer exists at the time of the person's death, the gift does not fail entirely; instead, it will be paid from the general assets of the deceased person's estate.

Here are some examples to illustrate this concept:

• Example 1: Funds from a Specific Bank Account

  Imagine a will that states: "I give $50,000 to my granddaughter, Emily, to be paid from my savings account at City Bank." This is a demonstrative bequest. It specifies a particular sum ($50,000) and a particular source (the City Bank savings account). If, upon the will-maker's death, the City Bank savings account only contains $30,000, Emily would still receive the full $50,000. The initial $30,000 would come from the City Bank account, and the remaining $20,000 would be paid from other general assets of the estate.

• Example 2: Shares from a Designated Investment Portfolio

  Consider a will that includes the provision: "I give 200 shares of TechCorp stock to my nephew, Michael, to be taken from my investment portfolio held at Global Securities." This is a demonstrative bequest because it specifies a quantity (200 shares of TechCorp) and a source (the Global Securities portfolio). If, at the time of death, the Global Securities portfolio only contains 150 shares of TechCorp, Michael would receive those 150 shares, and the estate would then purchase the remaining 50 shares from its general funds to fulfill the complete 200-share bequest.

• Example 3: Proceeds from the Sale of a Specific Asset

  A will might state: "I give $15,000 to my friend, David, to be paid from the proceeds of the sale of my antique coin collection." This is a demonstrative bequest. It designates a specific monetary amount ($15,000) and a specific source (the money generated from selling the coin collection). If the antique coin collection sells for only $12,000, David would still receive the full $15,000, with the additional $3,000 coming from the general assets of the estate. If the collection sells for more than $15,000, David receives $15,000, and the surplus goes into the general estate.