LAPSED GIFT
Back to GlossaryDefinition
A gift or bequest that is not paid to the named beneficiary because he or she is deceased and the will did not provide for the bequest to be paid to another
Summary
A lapsed gift occurs when someone named in a will to receive property or money has died before the person who wrote the will, and the will doesn't specify what should happen to that gift in such circumstances. Think of it like a package addressed to someone who no longer lives at that address - without alternative instructions, the gift essentially 'fails' and typically goes back into the general estate to be distributed according to other provisions of the will or state law.
Usage Context
Understanding lapsed gifts is crucial when studying will drafting, estate planning, and inheritance law. It's particularly important when analyzing how assets are distributed when original beneficiaries are unavailable, and when learning about preventive measures like anti-lapse statutes and contingent beneficiary clauses.
Common Confusions
- Assuming the gift automatically goes to the deceased beneficiary's children or spouse
- Confusing lapsed gifts with gifts that are specifically revoked by the testator
- Not understanding that anti-lapse statutes may prevent some gifts from lapsing
- Thinking that lapse only applies to money, when it applies to any type of bequest
- Confusing lapse with situations where the gifted property no longer exists (ademption)
