Paralegal Advanced Competency Exam (PACE) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Paralegal Advanced Competency Exam (PACE). Utilize flashcards and multiple-choice questions designed to enhance your knowledge of paralegal standards and competencies. Prepare effectively and increase your chances of passing!

Start Multiple Choice Practice Test
Start Flash Cards

Practice this question and more.

What is a lapsed gift?

  1. A gift that is returned to the estate of the donor

  2. A gift intended for a beneficiary who predeceases the donor

  3. A gift that is not legally recognized

  4. A gift abandoned due to a legal dispute

The correct answer is: A gift intended for a beneficiary who predeceases the donor

A lapsed gift refers to a situation in which a gift that was intended for a beneficiary can no longer be fulfilled because that beneficiary has died before the donor. In estate planning and wills, if a beneficiary named in the will passes away before the testator (the person who created the will), that gift is considered lapsed. Traditionally, unless the will specifically provides instructions for what should happen in such cases, the property or asset usually reverts to the estate and may be distributed according to the rules of intestacy or per stirpes to surviving relatives. This concept is important in understanding how gifts are administered in estate law, ensuring that legal proceedings properly address who benefits from a donor's intentions should circumstances change. Properly identifying the conditions under which a gift lapses is essential for both attorneys and paralegals in the management of estate documents and distribution.

More Questions Like This