Ademption by satisfaction occurs when a party gives someone a gift initially intended to be included in their will while that party is still alive. In cases of direct familial relationships, ademption by satisfaction is presumed as established by common law.
For example, if a father’s will states that his child will receive $100,000 and, while he is still alive, the father pays the child $25,000, then the child will only receive $75,000 through the will because the first $25,000 was presumably already satisfied. This presumption, however, can be overcome by evidence showing the first payment was not intended to be part of the child’s inheritance.
Some states have passed statutes departing from common law which remove the presumption of ademption in cases of gifts to immediate family members. In these states, a gift made while someone is still alive will not be considered to adeem any part of their will unless they expressly intend it to.
[Last updated in June of 2022 by the Wex Definitions Team]