Estate Planning in Florida: A Guide to Ademption
In the context of estate planning, the legal concept of ademption occurs when a specific item listed in a will is no longer part of the estate at the time of the testator’s death. In Florida, this legal doctrine can prevent a beneficiary from receiving a promised gift if the asset has been sold, lost, or otherwise disposed of. Courts will generally not substitute a replacement unless the will explicitly provides for it. Here, our St. Petersburg estate planning attorney provides an overview of the key points to understand about ademption in Florida.
Ademption: Defined
Ademption refers to the failure of a specific gift in a will because the item is no longer in the testator’s estate at the time of death. In Florida, the scenario typically occurs when a specific bequest—such as a house, a vehicle, or a particular piece of personal property—is sold, destroyed, or otherwise disposed of before the testator’s death.
Florida Considers Adeemed Bequests Revoked
Under Florida law, “adeemed” bequests are presumptively revoked. Indeed. when a gift is deemed “adeemed,” the beneficiary receives nothing in its place unless an exception applies. Florida follows the identity theory of ademption. In effect, that means that probate courts will generally not attempt to trace the value or substitute property unless expressly provided for in the will
The Takeaway: If a person is granted a specific piece of property/asset in a will and that asset is no longer part of the estate by the term the decedent passes away, no replacement is offered unless the will clearly and unambiguously states that there will be a replacement.
The Most Notable Exception: Property Sold/Destroyed and Direct Proceeds Available
There is an important exception to the ademption rule for probate and estate planning in Florida. Florida Statutes § 732.606 provides certain limited exceptions to the rule of ademption. If a specific property was sold or destroyed and the testator was entitled to insurance proceeds or sale proceeds at the time of death, the beneficiary may be entitled to those proceeds.
For instance, if a house left in a will was destroyed in a fire and insurance proceeds were pending at death, the beneficiary may still recover those proceeds. The insurance funds would be considered attached to the house. However, if a house was sold a year earlier while the testator was still alive, those funds would not be covered by this exception. No replacement would be offered.
Estate Planning Tip: To reduce the risk of ademption, you should regularly update their estate plan—especially after major life events such as selling property or changing investments.
Contact Our St. Petersburg Estate Planning Lawyer Today
At Fisher & Wilsey, P.A., our St. Petersburg estate planning attorney is a knowledge advocate for people and families. If you have any specific questions about estate plans, please do not hesitate to contact us today for a fully confidential consultation. With an office in St. Petersburg, our firm handles estate planning matters throughout the surrounding region in Florida.
Source:
leg.state.fl.us/statuTes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0732/Sections/0732.606.html
