Ademption

Ademption occurs when a specific gift can no longer be given because the asset was sold, given away, lost or destroyed before the testator died. The gift simply fails, and the beneficiary generally receives nothing in its place — they are not entitled to a cash equivalent. This commonly catches gifts of a specific car, property or shareholding that has changed by the time of death.

Ademption is most often avoided by reviewing specific gifts after any major sale or purchase, or by giving a share of the residue instead. Example: a Will gives "my apartment in Surry Hills" to a niece, but the testator sold it years earlier — the gift is adeemed and she receives nothing for it. Ademption differs from a lapsed gift, which fails because the beneficiary died first rather than the asset disappearing.