Ademption
From LawGuru Wiki
Template:Wills&Trusts Ademption is a term used in the law of wills to determine what happens when property bequested under a will is no longer in the testator's estate when the testator dies. For devises of specific items of property, the property is adeemed, and the gift fails. If, for example, the will bequeathed the testator's car to a specific person, but the testator owned no car at the time of his death, then the gift would have been adeemed.
General devises - gifts of cash amounts - are never adeemed. If there is not enough cash in the testator's estate to satisfy the gift, then other assets in the residuary estate are sold to raise the necessary cash.
Some property lies in a gray area, where the testator's specific intent must be determined. For example, where the testator bequests "500 shares of stock" in a company, this may be read as a general devise (that the estate should purchase and convey the particular stocks to the beneficiary), or it may be read as a specific devise, particularly if the testator used a possessive ("my 500 shares").
Ademption may also be waived if the property leaves the estate after the testator has been declared incompetent. Furthermore, in some cases the beneficiary will be entitled to the proceeds from the sale of property, or to the insurance payout for property that is lost or destroyed.
