PECUNIARY GIFT

Summary

A pecuniary gift is a bequest in a will that specifies an exact dollar amount to be given to a beneficiary, rather than a percentage of the estate or specific property. Unlike other types of gifts in estate planning, pecuniary gifts are fixed monetary amounts that must be paid regardless of the total estate value. For example, 'I leave $10,000 to my nephew John' is a pecuniary gift, while 'I leave my house to my daughter' would be a specific gift of property.

Usage Context

Understanding pecuniary gifts is crucial when studying wills and estate planning, particularly when analyzing how different types of bequests are prioritized and paid out during estate administration. This concept is essential for understanding ademption and abatement issues.

Common Confusions

• Thinking pecuniary gifts are the same as general gifts (pecuniary gifts specify exact amounts)
• Confusing pecuniary gifts with demonstrative gifts (which are paid from a specific source)
• Believing pecuniary gifts automatically adjust for inflation (they don't unless specified)
• Assuming pecuniary gifts have priority over all other gifts (they may be reduced if estate is insufficient)