Legal Definitions - demonstrative devise

A demonstrative devise is a type of gift made in a will that directs a specific amount of money or a certain quantity of property to be given to a beneficiary. This gift is primarily intended to be paid from a particular fund or source identified by the person making the will (the testator). However, a key characteristic of a demonstrative devise is that if the designated fund or source is insufficient or no longer exists at the time of the testator's death, the gift does not fail. Instead, the beneficiary will still receive the full amount or quantity from the general assets of the estate.

This type of devise combines elements of both a specific devise (which points to a particular item or fund) and a general devise (which is paid from the general estate). Unlike a specific devise, which would fail if the exact item or fund is gone, a demonstrative devise ensures the beneficiary still receives the gift, even if the primary source is unavailable.

• Example 1: Monetary Gift from a Specific Account

  A will states, "I give $50,000 to my nephew, Michael, to be paid from my savings account at City Bank." At the time of the testator's death, the City Bank savings account only contains $30,000. Because this is a demonstrative devise, Michael will still receive the full $50,000. The initial $30,000 will come from the City Bank account, and the remaining $20,000 will be paid from the general assets of the estate.

  This illustrates a demonstrative devise because it designates a specific source (the City Bank account) but ensures the gift is still fulfilled from the general estate if that source is insufficient.

• Example 2: Shares from a Brokerage Portfolio

  A will includes the provision, "I bequeath 1,000 shares of TechCorp stock to my friend, Lisa, to be taken from my investment portfolio held at Global Securities." When the testator passes away, the Global Securities portfolio only holds 600 shares of TechCorp. In this scenario, Lisa would receive the 600 shares from the specified portfolio, and the estate would then purchase an additional 400 shares of TechCorp (or provide their cash equivalent) from its general funds to complete the gift to Lisa.

  This demonstrates a demonstrative devise as it points to a specific pool of assets (the Global Securities portfolio) but guarantees the full quantity of the gift, even if the primary source falls short.

• Example 3: Gift Payable from Sale Proceeds

  A will specifies, "I give $10,000 to the local animal shelter, to be paid from the proceeds of the sale of my vintage coin collection." After the testator's death, the vintage coin collection is sold, but it only fetches $7,500. The animal shelter will still receive the full $10,000. The $7,500 will come from the sale of the coin collection, and the remaining $2,500 will be paid from other assets in the testator's estate.

  This is a demonstrative devise because it identifies a particular source for payment (the coin collection sale proceeds) but ensures the beneficiary receives the full stated amount, drawing from the general estate if the primary source is inadequate.