Legal Definitions - nonlapse statute

A nonlapse statute (also commonly known as an antilapse statute) is a law designed to prevent a gift specified in a will from failing or "lapsing" if the intended recipient dies before the person who made the will. Without such a statute, if a beneficiary passes away before the will-maker, the gift intended for them would typically return to the will-maker's estate and might be distributed to other heirs or according to the will's residual clauses.

Instead, a nonlapse statute ensures that the gift passes to the deceased beneficiary's direct descendants (like their children or grandchildren), assuming certain conditions are met. These laws are based on the idea that most people would want their gift to go to the beneficiary's family rather than revert to the estate if the beneficiary themselves cannot receive it. However, these statutes usually only apply if the deceased beneficiary is a relative of the will-maker (or their spouse) and if the will does not explicitly state a different plan for that gift.

• Scenario: Inheritance for a Child

  Sarah's will states, "I leave my house to my son, David." Tragically, David passes away a year before Sarah, but he leaves behind two children, Emily and Michael. Without a nonlapse statute, the house would typically go back into Sarah's estate and might be distributed to other relatives or according to a general "remainder" clause in her will.

  How it illustrates the term: Because of a nonlapse statute, David's share (the house) does not "lapse" or fail. Instead, it automatically passes to his children, Emily and Michael, ensuring that Sarah's grandchildren receive the inheritance intended for their father, reflecting Sarah's likely wishes.

• Scenario: Gift to a Sibling

  John's will specifies, "I give $50,000 to my sister, Maria." Maria dies six months before John, leaving a daughter named Sofia. If there were no nonlapse statute, the $50,000 would revert to John's estate, and Sofia would receive nothing from that specific gift.

  How it illustrates the term: A nonlapse statute prevents the $50,000 gift to Maria from failing. Since Maria is John's sister (a relative typically covered by these statutes), her daughter Sofia will inherit the $50,000 in her mother's place, fulfilling the spirit of John's original intention.

• Scenario: Class Gift to Nieces and Nephews

  Aunt Carol's will states, "I leave the remainder of my estate, in equal shares, to my nieces and nephews." At the time Carol wrote her will, she had five nieces and nephews. One of her nephews, Robert, dies before Carol, leaving a son named Alex. If the nonlapse statute didn't exist, the estate would be divided among the remaining four nieces and nephews, and Alex would get nothing.

  How it illustrates the term: The nonlapse statute ensures that Robert's share of the "class gift" (a gift to a group rather than individually named people) does not lapse. Instead, Robert's son, Alex, steps into his father's shoes and receives the portion of Carol's estate that Robert would have inherited, maintaining the equal distribution among the family lines.