Legal Tip 34: Ademption and Wills

Discussion in 'Wills & Estate Planning' started by Terry_w, 22nd Jul, 2015.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Ademption and Wills


    Ademption occurs when a person leaves a specific gift in their will, but disposes of that item before their death. Upon their death that there is no gift to give and the beneficiary generally (there are exceptions) misses out.


    An example: “I give my Honda Accord car to my son and the residue of my estate to my daughter”


    If you sell the Honda and buy a Mazda your son may miss out completely. The Mazda would go to the daughter.


    A way around this is to keep the wording broad : “I give any vehicle that I own at my death to…” sort of thing.


    A car is a small asset, but imagine this occurring with real property.


    Back up clauses and also assist. “I give x to y, but if I no longer own x I give…”


    Another way is to constantly keep updating your will as your ownership of assets change.
     
    Terry_w, 22nd Jul, 2015
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  2. TwoDogs

    TwoDogs Well-Known Member

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    Or just leave it all to charity and let them fight over it.
     
    TwoDogs, 22nd Jul, 2015
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    And the charities do fight to get their money. Lots of court cases
     
    Terry_w, 22nd Jul, 2015
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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Kerry Packer did that to me. I got ademptioned up the wazoo.
     
    Paul@PAS, 22nd Jul, 2015
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    D.T. likes this.
  5. D.T.

    D.T. Specialist Property Manager Business Member

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    So did Alan Bond
     
    D.T., 22nd Jul, 2015
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