When thinking about what to do in your Will, one of matters you will need to consider is whether you want certain assets to be gifted to particular peopl e when you die. One of the main assets to consider is your home. Sometimes, a will maker may decide to gift his or her home to a specific person, for example an adult child who has cared for the parent will-maker (“Testator”). So, what happens when that home is no longer in the will-maker’s name?
If the will-maker’s property, that is the home, has been specifically named and gifted in his or her Will and that property has been sold before the will-maker’s death, then that property is not able to be gifted in accordance with the Will and the named recipient of the gift (“beneficiary”) will miss out. This is known as the principle of “ademption”.
A common example of where this might occur is if the home of the parent will-maker has been sold in order for the parent to obtain sufficient care by moving into a nursing home facility, with the proceeds of sale paying for a residential accommodation bond.
One way to deal with this sort of situation is to extend the gift to include, not only the home, but also any future property or accommodation bought with the sale proceeds of the home purchased by, or on behalf of, the parent will-maker. However, whether to include a clause like this in the Will depends on the circumstances and, most importantly, the wishes of the will-maker.
If you would like advice about whether you should include this kind of Will Gifting clause in your Will, or want to know if your current Will correctly reflect your intentions and wishes, please do not hesitate to contact our Estate Planning, Probate & Administration Solicitors at Brazel Moore Lawyers on (02) 4324 7699.
Leading law firms committed to helping clients cost-effectively will have a range of fixed- priced Initial Consultations to suit most people’s needs in quickly learning what their options are. At Brazel Moore Lawyers we have an experienced team who can answer your questions and put you on the right track.