DEMONSTRATIVE GIFT

Summary

A demonstrative gift is a type of gift in a will that not only specifies what the beneficiary will receive, but also identifies the particular source or fund from which that gift should be paid. Unlike a general gift that simply states an amount without specifying the source, a demonstrative gift provides direction about where to find the assets. For example, '$10,000 from my savings account at First National Bank' is demonstrative because it identifies both the amount and the specific source.

Usage Context

Understanding demonstrative gifts is crucial when studying estate planning, will drafting, and the administration of estates. This concept is particularly important when analyzing how different types of gifts are treated during probate, especially regarding ademption and abatement rules.

Common Confusions

• Students often confuse demonstrative gifts with specific gifts - demonstrative gifts can be satisfied from other sources if needed, while specific gifts cannot
• Mixing up the order of abatement - demonstrative gifts are protected more than general gifts but less than specific gifts
• Thinking that if the named source is insufficient, the gift fails entirely (it doesn't - it becomes general to the extent of the deficiency)