Legal Definitions - taker

In legal terms, a taker is a person who receives or acquires property or an interest in an estate. This acquisition often occurs through formal legal mechanisms such as a will, a trust, or the laws governing inheritance when someone dies without a will (known as intestate succession).

• Example 1 (Inheritance by Will): When Mr. Henderson passes away, his will clearly states that his vintage car collection is to be given to his niece, Clara. In this scenario, Clara is the taker of the car collection, as she receives it directly through the provisions of the will.

• Example 2 (Intestate Succession): Sarah's brother dies unexpectedly without leaving a will. According to the state's laws of intestate succession, Sarah is legally entitled to inherit a portion of his estate. Here, Sarah is a taker of that portion of the estate as determined by law.

• Example 3 (Trust Distribution): A charitable trust is established to provide scholarships. The trust document empowers the trustee to select deserving students each year. When the trustee awards a scholarship to Emily, Emily becomes a taker of the scholarship funds from the trust.

The term "taker" also has several specialized variations:

• First Taker: This refers to a person who initially receives an estate or property interest for a specific period, after which it passes to another person. The first taker's interest is temporary, preceding a future interest held by someone else.

  • Example: A will specifies, "My vacation home shall go to my daughter, Lisa, for her lifetime, and upon her death, it shall pass to my grandson, Alex." Lisa is the first taker because she receives the use and enjoyment of the home initially for the duration of her life. Alex holds a future interest that will become active after Lisa's passing.

• Presumptive Taker: This is an individual who would be entitled to receive property if the final determination of beneficiaries were to be made at the current moment. This designation is often provisional, as the actual beneficiaries might change in the future due to births, deaths, or other events.

  • Example: A trust dictates that its assets will be distributed to "the children of my son, Mark, who are alive when Mark reaches the age of 70." If Mark is currently 60 and has two living children, those two children are the presumptive takers. However, if Mark has another child before turning 70, or if one of his current children passes away, the final group of takers would change.

• Taker in Default: This person is designated to receive property if a specific condition is not met, particularly if someone with the authority to decide who gets the property (known as a "donee" of a "power of appointment") fails to exercise that power.

  • Example: A grandmother creates a trust allowing her granddaughter, Sophia, to decide which of Sophia's own children will inherit a specific investment portfolio upon Sophia's death. The trust also states, "If Sophia fails to make this decision, the portfolio shall be divided equally among all her children." If Sophia dies without having made a choice, her children become the takers in default, inheriting the property as originally specified by the grandmother's fallback instruction.