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Wills • Changes in Beneficiaries
WILLS#039
Legal Definition
Ademption by satisfaction occurs where the testator gives the beneficiary a substitute gift during the testator's lifetime, and usually applies in the case of a general gift. Ademption by satisfaction is established if: (1) the will itself provides for deduction; (2) there is a contemporaneous writing by the testator; (3) the beneficiary acknowledges in writing the satisfaction, or; (4) in the case of a specific gift, that thing was given.
Plain English Explanation
"Ademption" refers to the failure of a gift. As you've learned in another card, "ademption by extinction" is the failure of a gift because it is no longer owned by the person who died when they died (so it can no longer be given to anyone). In contrast, ademption by satisfaction is the failure of a gift because the testator decided to give something else instead. In other words, it is like saying, "Yeah, I know the will said you were going to get something, but I already gave it to you, so you should be satisfied. You can't double-dip after I die."
In order for a different gift to satisfy the expectation and intention originally identified in the will, one of the following must apply:
(1) If the writing itself identifies that a gift has already been made. For example, if Bob's will says, "I leave Sam $1,000 and have already given it to him."
(2) If there is a separate writing that confirms the gift was provided. For example, if Bob's will says, "I leave Sam $1,000." Then, a month later, Bob gives $1,000 to Sam with a letter that says, "This is in satisfaction of the bequest in my will."
(3) If the person receiving the gift acknowledges in writing that there was a satisfaction. For example, if Bob gives Sam $1,000 and Sam sends a receipt to Bob saying something like, "I accept this $1,000 in satisfaction of the gift identified in your will."
(4) If the item is a specific legacy, then satisfaction occurs when it is given to the person identified in the will. For example, if Bob's will says, "I leave to Sam my Rolex," but then a week after Bob executes the will he decides to give Sam his Rolex early, Sam has been satisfied. After Bob dies, Sam can't say, "Well? Where is my Rolex?" Why? Because he already has the Rolex. He doesn't get another.
In order for a different gift to satisfy the expectation and intention originally identified in the will, one of the following must apply:
(1) If the writing itself identifies that a gift has already been made. For example, if Bob's will says, "I leave Sam $1,000 and have already given it to him."
(2) If there is a separate writing that confirms the gift was provided. For example, if Bob's will says, "I leave Sam $1,000." Then, a month later, Bob gives $1,000 to Sam with a letter that says, "This is in satisfaction of the bequest in my will."
(3) If the person receiving the gift acknowledges in writing that there was a satisfaction. For example, if Bob gives Sam $1,000 and Sam sends a receipt to Bob saying something like, "I accept this $1,000 in satisfaction of the gift identified in your will."
(4) If the item is a specific legacy, then satisfaction occurs when it is given to the person identified in the will. For example, if Bob's will says, "I leave to Sam my Rolex," but then a week after Bob executes the will he decides to give Sam his Rolex early, Sam has been satisfied. After Bob dies, Sam can't say, "Well? Where is my Rolex?" Why? Because he already has the Rolex. He doesn't get another.
Hypothetical
Hypo 1: Bob's will promises Sam $10,000. Before Bob passes away, he gives Sam a car worth $10,000 instead. Sam writes a thank you note, acknowledging the car as his early inheritance. Result: Here, ademption by satisfaction applies because Sam acknowledged in writing that he received the car as an early inheritance, replacing the cash gift promised in the will.
Hypo 2: Bob intends to leave Sam a valuable painting in his will. However, he decides to gift Sam a different, equally valuable painting while he's still alive. Bob also writes a note explaining that this new painting replaces the one in his will. Result: This is a case of ademption by satisfaction because Bob made a contemporaneous writing stating the replacement of the original gift with another.
Hypo 3: In Bob's will, he leaves Sam a specific set of golf clubs. Later, Bob gives Sam a similar set of golf clubs during his lifetime. The will doesn't mention this change, nor is there any written acknowledgment from either party. Result: Ademption by satisfaction does not apply here as there is no written evidence or will provision to confirm the new gift replaces the old one. In other words, just because Bob already gave Sam a similar set of golf clubs doesn't mean we can assume (without supporting evidence) that those clubs were meant to replace the specific clubs previously identified in the will.
Hypo 2: Bob intends to leave Sam a valuable painting in his will. However, he decides to gift Sam a different, equally valuable painting while he's still alive. Bob also writes a note explaining that this new painting replaces the one in his will. Result: This is a case of ademption by satisfaction because Bob made a contemporaneous writing stating the replacement of the original gift with another.
Hypo 3: In Bob's will, he leaves Sam a specific set of golf clubs. Later, Bob gives Sam a similar set of golf clubs during his lifetime. The will doesn't mention this change, nor is there any written acknowledgment from either party. Result: Ademption by satisfaction does not apply here as there is no written evidence or will provision to confirm the new gift replaces the old one. In other words, just because Bob already gave Sam a similar set of golf clubs doesn't mean we can assume (without supporting evidence) that those clubs were meant to replace the specific clubs previously identified in the will.
