In the world of business and legal affairs, an antilapse statute is a law that ensures a gift or inheritance is not automatically revoked in the event that the original beneficiary or donee dies before receiving it. This is especially important in wills, trusts, and other instruments that specify eventual transfers of assets.
Essentially, antilapse statutes are made to protect the original testator or grantor’s wishes, which may have since become impossible should the original recipient be deceased. These laws allow for the transfer of property to relatives of the original beneficiary if they are still alive, rather than of having it revert back to the testator or other designated beneficiary.
How Do Antilapse Statutes Work?
Antilapse statutes typically come into play if the original beneficiary of an estate or gift predeceases the deceased testator or grantor. When this happens, the statutes allow a substitute beneficiary – such as a relative of the original beneficiary – to receive the gift or property.
Under an antilapse statute, if the original recipient of an estate or gift predeceases the testator or grantor, then the property or gift will go to the relatives of the original beneficiary. The most common substitutes are the decedent’s children, grandchildren, siblings, parents, and any other specified relatives.
In most cases, the substitute beneficiary must be related to the original beneficiary in some way. This could include direct descendants or siblings, or more distant relationships such as cousins, aunts or uncles, etc.
When Are Antilapse Statutes Used?
Antilapse statutes are most commonly used when the original beneficiary of an estate or gift is deceased at the time the will or trust is executed. This could also occur in situations where the testator or grantor predeceases the recipient of a property or gift.
They are also commonly used in situations where a will has been written prior to any of the named beneficiaries passing away, but where it becomes clear that the original beneficiary of the property has since died. In these cases, the antilapse statute will provide a substitution or replacement should the original donee no longer be alive.
Why Does an Antilapse Statute Matter?
For those who are involved in estate planning and/or making arrangements with a will or trust, an antilapse statute is an important legal concept to understand. This is true whether you are drafting a will or trust as a beneficiary in another’s will.
The main purpose of an antilapse statute is to ensure that the testator’s wishes are honored, and that the property or gift in question is not lost due to an unintended situation. Antilapse statutes help to make sure that a gift or inheritance will still go to the intended people, even if the original beneficiary dies before receiving the property.