Ademption Definition Bankrate.com Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content

Ademption

Ademption is a legal term. Do you know what it means? Bankrate explains it.

What is ademption

Ademption occurs when property gifted in a will is not in the estate’s possession at the time of the testator’s death. This occurs when the property has been sold, destroyed or given away before the testator’s death.

Deeper definition

The general rule of ademption states that when a property mentioned in a will is no longer in the estate’s possession, the property or its cash equivalent is not passed to the beneficiary. When this occurs, the property is considered adeemed. Ademption laws vary from state to state. Sometimes heirs can claim the property if they can prove the testator was not competent at the time he sold or gave away the property. experts recommend that people plan for ademption issues when establishing their estates. Including language that clarifies your wishes if a piece of property is not in your estate’s possession at the time of your death can help ensure your wishes are honored. Ademption should not be confused with ademption by satisfaction. Ademption by satisfaction occurs when the testator changes the timing of a gift so that the beneficiary can enjoy the gift before the testator’s death. For example, a grandparent may decide to give a grandchild the money that is already bequeathed in a will while the grandparent is still alive to help pay for the grandchild’s college.

Ademption example

Mary has named her daughter as the beneficiary of her car in her will. Six months before she dies, Mary is in a car accident and the damages to the car are so significant that the insurance company totals the car and sells it to a junkyard. Mary doesn’t update her will to reflect that the car is no longer in her possession. According to the rule of ademption, the car will not pass to Mary’s daughter, nor will she receive any compensation for the car.

More From Bankrate

Wondering how to protect your data from identity thieves? Check out these steps. With inflation making your bills even higher, here are a few ways to bring in cash. Americans were also more likely to blame Washington policymakers than credit them. These seven products can help protect you and your money from cybercrime. Holiday travel will be pricey this year, but Bankrate has tips on how to save. Here are steps you can take to establish your independence after financial abuse and help ensure long-term financial health. Selecting the right lawyer can mean the difference between eventual rebound and long-term pain. Financial therapists merge financial planning with mental health care. Weigh the pros and cons to decide if debt consolidation is right for your situation.