Legal Definitions - substitutional legacy

A substitutional legacy refers to a gift made in a will that is intended by the person making the will (known as the testator) to replace or take the place of an earlier gift or obligation, rather than being an additional gift. The testator's intention for the new gift to substitute for a previous one must be clear, either explicitly stated in the will or inferred from the circumstances. This concept often arises when a testator makes multiple provisions for the same beneficiary, and it becomes necessary to determine if a later gift is meant to be in addition to or instead of an earlier one.

Here are some examples to illustrate this concept:

• Example 1: Replacing a Specific Item with Cash

  Imagine a will that initially states, "I give my antique grandfather clock to my niece, Clara." A year later, the testator adds a codicil (an amendment to the will) that reads, "I give the sum of $5,000 to my niece, Clara, in lieu of the antique grandfather clock mentioned in Clause 3 of my original will."

  Explanation: In this scenario, the $5,000 cash gift is a substitutional legacy. It is specifically intended to replace the earlier gift of the grandfather clock. Clara will receive the money, but not the clock, because the testator clearly expressed the intention for the cash to substitute the original item.

• Example 2: Satisfying a Debt

  Consider a situation where a testator owes their long-time gardener, Mr. Henderson, $10,000 for outstanding services. In their will, the testator includes a clause stating, "I give the sum of $10,000 to Mr. Henderson, my gardener, and this legacy is to be taken in full satisfaction of any debts I may owe him."

  Explanation: Here, the $10,000 legacy to Mr. Henderson is a substitutional legacy. It is intended to replace the testator's existing financial obligation (the debt) to Mr. Henderson. Instead of Mr. Henderson having to claim the debt separately, the will provides a gift that fulfills that obligation.

• Example 3: Modifying a Share of an Estate

  A will initially leaves "one-third of my residuary estate to my son, David." Later, the testator amends the will to state, "I give my son, David, the specific property located at 123 Oak Street, and this gift is to be considered in substitution for his one-third share of my residuary estate."

  Explanation: The gift of the property at 123 Oak Street is a substitutional legacy. It replaces David's original entitlement to a fractional share of the remaining estate. David will receive the specific property, but he will no longer receive the one-third share of the residuary estate, as the later gift was intended to take its place.