NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tools for Estate Planning
Mr. Dinesh Patel wants to leave his property to his daughter and, if she dies before him, to her children. Which Will clause best addresses the risk that the daughter predeceases him?
A contingent or alternate bequest naming the daughter's children as substitutes best covers the risk. Without it, the gift to a legatee who dies before the testator may lapse. Revocation clauses, executor appointments or deleting the daughter do not give the grandchildren her share.
- AA clause revoking all earlier Wills
- BA contingent or alternate bequest naming the daughter's children as substitute beneficiariesCorrect
- CA clause appointing a witness as executor
- DA residuary clause deleting the daughter altogether
Explanation
If a legatee dies before the testator, the bequest may lapse. An alternate (contingent) bequest names substitute beneficiaries so the gift passes as intended. Revoking earlier Wills, appointing an executor, or removing the daughter does not provide for her children.
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