Abatement, Ademption, Lapse, and Slayer Statutes under Trusts and Estates
🔹 Overview
These four concepts deal with how gifts in wills or trusts are affected when certain conditions arise that prevent or complicate the intended distribution of assets.
1. Abatement
What is Abatement?
Abatement refers to the reduction of gifts in a will or trust when the estate assets are insufficient to pay all debts, expenses, and bequests.
When liabilities and expenses exceed the available assets, gifts are reduced proportionally or in a specific order to satisfy obligations.
The court or trustee decides which gifts abate (reduce) first.
How Abatement Works
Usually, gifts abate in this order:
Property not disposed of by will (intestate property)
Residuary bequests (the remainder after specific gifts)
General legacies (monetary gifts)
Specific gifts (particular items or property)
Case Example:
Johnson v. Estate of Miller
Facts: The decedent’s estate was insolvent after debts and expenses.
Issue: Which gifts should be reduced?
Outcome: The court held that the residuary beneficiaries’ gifts abated first, preserving specific bequests as much as possible.
Principle: Abatement protects specific gifts by reducing more general gifts first when assets are insufficient.
2. Ademption
What is Ademption?
Ademption occurs when a specific gift in a will or trust is no longer part of the estate at the time of death, typically because it was sold, lost, or destroyed.
The specific gift fails if the item is not in the estate.
The beneficiary usually receives nothing unless the will provides otherwise.
Types of Ademption
Ademption by extinction: The specific item is missing.
Ademption by satisfaction: The testator gives the gift during their lifetime.
Case Example:
Smith v. Brown
Facts: A testator left a specific painting to a beneficiary, but the painting was sold before death.
Issue: Does the beneficiary receive the sale proceeds or nothing?
Outcome: The court ruled that because the specific item was no longer part of the estate, the gift was adeemed, and the beneficiary received nothing.
Principle: A specific gift must exist at death to pass to the beneficiary.
3. Lapse
What is Lapse?
Lapse occurs when a beneficiary named in a will or trust dies before the testator, causing the gift to fail.
The gift lapses and usually goes to the residuary estate or falls into intestacy.
Some wills or trusts have anti-lapse provisions that pass the gift to descendants of the deceased beneficiary.
Case Example:
Davis v. Estate of Green
Facts: The will left $50,000 to the testator’s friend, who died before the testator.
Issue: What happens to the gift?
Outcome: The court held the gift lapsed, and the amount passed to the residuary beneficiaries.
Principle: A gift lapses if the beneficiary dies before the testator, absent a contrary provision.
4. Slayer Statutes
What are Slayer Statutes?
Slayer rules prevent a person who unlawfully causes the death of a decedent from inheriting from that decedent’s estate.
The rationale is to prevent unjust enrichment by the wrongdoer.
The slayer is treated as if they predeceased the decedent, causing their gifts to lapse.
Case Example:
Anderson v. Anderson
Facts: A beneficiary intentionally caused the death of the testator to inherit the estate.
Issue: Can the beneficiary receive under the will?
Outcome: The court denied inheritance to the slayer, holding that they forfeited their right to inherit.
Principle: One who unlawfully kills the decedent is disqualified from inheriting.
🔹 Summary Table
| Concept | Definition | Key Effect | Example Outcome |
|---|---|---|---|
| Abatement | Reduction of gifts due to insufficient assets | Gifts reduced in priority order | Residuary gifts abate before specific gifts |
| Ademption | Specific gift no longer in estate | Gift fails; beneficiary usually gets nothing | Sold painting gift is adeemed |
| Lapse | Beneficiary dies before testator | Gift fails, passes to residuary or intestate heirs | Gift to predeceased friend lapses |
| Slayer Statutes | Killer cannot inherit from victim | Slayer disqualified from inheritance | Killer barred from receiving estate |
✅ Conclusion
These concepts ensure the fair and logical distribution of estates when complications arise due to insufficient assets, disappearance of gifts, predeceased beneficiaries, or wrongful conduct. Understanding them helps avoid unintended results and respects the testator’s intent as closely as possible.
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