Which of the Following Best Describes the Doctrine of Ademption

question 40

Multiple Choice

Which of the following best describes the doctrine of ademption?

• A) When there are not enough assets to satisfy all the gifts in the will,the residual gifts will be the last to be paid.
• B) When assets are distributed to lineal descendants,equal shares are given to all descendants regardless of which generation they are in.
• C) If a decedent dies without owning the property that was the subject of a specific gift in the will,the beneficiary will receive nothing for it.
• D) When there are not enough assets in the estate to satisfy all general gifts,they are all satisfied on a pro-rata basis.

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Definitions:

Financial Lease

A type of lease where the lessee has use of an asset through its useful life, often with ownership transferring at the end.

Fully Amortized

Refers to a loan where the principal and interest are paid off completely over the loan term.

Lessor's Cost

The expenses incurred by a lessor (the property owner) when leasing out an asset, including maintenance, taxes, and any other costs related to the asset's upkeep.

Operating Lease

Usually a shorter-term lease where the lessor is responsible for insurance, taxes, and upkeep. Often cancellable on short notice.