Satisfaction of legacies
Encyclopedia
Satisfaction of legacies is a common law
doctrine that affects the disposition of property under a will
. Under the doctrine, any gift that the maker of the will (the testator) gives during his lifetime to a named beneficiary of the will is presumptively treated as a satisfaction of that beneficiary's inheritance. After the death of the testator, the amount of the gift would then be deducted from the amount that the beneficiary would otherwise have received, even if it operates to entirely cancel out the inheritance. The presumption applies only when the gift is made after the will has already been executed.
Many jurisdictions have repealed the satisfaction of legacies doctrine by statute. Even in those jurisdictions, however, a gift may still be treated as a satisfaction of legacy if such an intention is expressed in a written document made close to the time of the gift and signed by either the testator or the beneficiary. Jurisdictions that have enacted such a statute include Virginia
.
A similar common law doctrine operates regarding inheritance by intestacy
(i.e., without a will); such a gift is then called an advancement
. The concepts work similarly, but are independent of one another; jurisdictions that have repealed the doctrine of satisfaction of legacies may still have the traditional doctrine of advancement in place. This may be because the law presumes that a person who was possessed of enough sophistication to make a will would know how to amend that will or otherwise document their desire that the gift be deemed satisfied.
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
doctrine that affects the disposition of property under a will
Will (law)
A will or testament is a legal declaration by which a person, the testator, names one or more persons to manage his/her estate and provides for the transfer of his/her property at death...
. Under the doctrine, any gift that the maker of the will (the testator) gives during his lifetime to a named beneficiary of the will is presumptively treated as a satisfaction of that beneficiary's inheritance. After the death of the testator, the amount of the gift would then be deducted from the amount that the beneficiary would otherwise have received, even if it operates to entirely cancel out the inheritance. The presumption applies only when the gift is made after the will has already been executed.
Many jurisdictions have repealed the satisfaction of legacies doctrine by statute. Even in those jurisdictions, however, a gift may still be treated as a satisfaction of legacy if such an intention is expressed in a written document made close to the time of the gift and signed by either the testator or the beneficiary. Jurisdictions that have enacted such a statute include Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
.
A similar common law doctrine operates regarding inheritance by intestacy
Intestacy
Intestacy is the condition of the estate of a person who dies owning property greater than the sum of their enforceable debts and funeral expenses without having made a valid will or other binding declaration; alternatively where such a will or declaration has been made, but only applies to part of...
(i.e., without a will); such a gift is then called an advancement
Advancement (inheritance)
Advancement is a common law doctrine of intestate succession that presumes that gifts given to a person's heir during that person's life are intended as an advance on what that heir would inherit upon the death of the parent. For example, suppose person P had two children, A and B...
. The concepts work similarly, but are independent of one another; jurisdictions that have repealed the doctrine of satisfaction of legacies may still have the traditional doctrine of advancement in place. This may be because the law presumes that a person who was possessed of enough sophistication to make a will would know how to amend that will or otherwise document their desire that the gift be deemed satisfied.