Q: What happens to an inheritance if the asset no longer exists?
A: It simply fails.
A Will only takes effect upon death. Until then, the testator retains full control over their assets and may sell or transfer them at any time. In other words, a bequest is not a guarantee, it is an intention that can change through actions, not just words.
Imagine this🤔: a father leaves his car to his son in his will. A year later, he sells the car but fails to update his Will. When he eventually passes on, what does the son receive under that clause?
Nothing.
Under the Law of Succession, if a specifically gifted asset is no longer part of the estate at the time of death or has been substantially changed, the gift is extinguished. The law treats it as though the bequest was withdrawn.
This concept, known as ademption, means the asset is gone and therefore the gift fails. The son loses out on that inheritance. It is a powerful reminder that estate planning is not a one-time event. Circumstances change, assets are bought or sold and your Will should evolve accordingly.
What happens, then, when a Dependant feels excluded because they receive nothing.
They may apply to court for reasonable provision. A Dependant is entitled to such provision, and the court has discretion to award a share of the estate.
Takeaway: If it’s no longer in your estate, it cannot be inherited. Regularly
review and update your will to ensure your intentions remain aligned with reality.
Now you know- Plan wisely
This is general information only- contact us for legal advice.
