Paralegal Advanced Competency Exam (PACE) Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

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.