Legal Definitions - failed legacy

A failed legacy, also known as a lapsed legacy, refers to a gift of property or money specified in a will that cannot be distributed to the intended recipient. This typically occurs because the beneficiary is no longer alive, the specific item bequeathed no longer exists or is no longer owned by the person who made the will, or a condition attached to the gift cannot be met. When a legacy fails, the property or money usually becomes part of the residuary estate (the remaining assets after specific gifts are distributed) or is distributed according to intestacy laws if no other provision is made.

• Example 1: Beneficiary Predeceases Testator

  Sarah's will states, "I give my valuable collection of rare books to my dear friend, David." However, David passes away two years before Sarah does. When Sarah dies, her executor discovers that David is no longer alive.

  Explanation: The gift of the rare books to David is a failed legacy because the intended beneficiary, David, predeceased Sarah. Since David is not alive to receive the gift, the collection of books cannot be distributed as originally intended and would typically fall into Sarah's residuary estate.

• Example 2: Ademption of Specific Property

  Mark's will includes the provision, "I bequeath my 2018 electric car to my nephew, Alex." A year before Mark's death, his car is involved in an accident and is declared a total loss by his insurance company. Mark uses the insurance payout to purchase a new, different model of car.

  Explanation: The gift of the 2018 electric car to Alex is a failed legacy due to ademption. The specific item mentioned in the will (the 2018 electric car) no longer exists within Mark's estate at the time of his death. Alex would not receive the new car or the cash equivalent of the old one, as the specific gift itself ceased to exist.

• Example 3: Condition Not Met

  Eleanor's will specifies, "I give $100,000 to my grandson, Michael, provided he graduates with a bachelor's degree from an accredited university by the age of 25." Eleanor dies when Michael is 22. By the time Michael turns 25, he has decided to pursue a career in skilled trades and has not enrolled in a university program.

  Explanation: The gift of $100,000 to Michael is a failed legacy because the condition attached to it (graduating from an accredited university by age 25) was not met. Since the prerequisite for receiving the gift was not fulfilled, the money cannot be distributed to Michael and would instead become part of Eleanor's residuary estate.