Legal Definitions - testamentary gift

A testamentary gift is a transfer of property or assets made by an individual through their last will and testament, which only takes effect upon their death. It is a gift that is legally established in a will and is distributed to the designated recipient (the beneficiary) after the will-maker (the testator) has passed away and the will has been probated.

Here are some examples to illustrate this concept:

• Example 1: Specific Item Bequest

  Sarah's will states, "I give my antique grandfather clock to my niece, Emily." Upon Sarah's death, and after her will is legally processed, Emily will receive ownership of the grandfather clock. This is a testamentary gift because the transfer of the clock to Emily is specified in Sarah's will and occurs only after Sarah's passing.

• Example 2: Monetary Bequest

  In his will, Mr. Henderson includes a clause that reads, "I bequeath the sum of $25,000 to the local animal shelter." After Mr. Henderson dies, his estate's executor will distribute this specific amount of money to the animal shelter as directed. This financial contribution is a testamentary gift because it is a donation mandated by his will and becomes effective only after his death.

• Example 3: Residuary Gift

  Maria's will specifies that after all her debts are paid, and all specific gifts (like jewelry to her sister or a car to her brother) have been distributed, "the remainder of my estate shall be divided equally between my two children, David and Lisa." The remaining assets, often referred to as the "residue" of the estate, are transferred to David and Lisa. This distribution of the remaining estate is a testamentary gift because it is a transfer of assets directed by Maria's will, taking effect only after her death and the fulfillment of other estate obligations.