NFPA Paralegal Core Competency Exam (PCCE)Substantive LawHard
A paralegal is reviewing a client's will. The will specifies that 'all my digital assets, including my cryptocurrency and online accounts, shall be distributed equally among my three children.' This provision in the will is an example of which type of testamentary gift?
- AResiduary gift
- BDemonstrative legacy
- CGeneral legacy
- DSpecific devise
Show answer & explanationAnswer & explanation
Correct answer: D. Specific devise
A specific devise (or bequest) is a gift of a particular, identifiable item of property from the testator's estate to a named beneficiary. Digital assets and cryptocurrency, when specifically identified, fall under this category, even if the term 'devise' traditionally referred to real property.
Why the other options are wrong
- A. A residuary gift disposes of all remaining property after other gifts are made.
- B. A demonstrative legacy is a gift of a specific amount to be paid from a specific source.
- C. A general legacy is a gift of a general sum of money or quantity of property, not from a specific source.
Specific Devise/Bequest
A testamentary gift of a particular, identifiable item of property (real or personal) to a named beneficiary. It is distinct from other assets in the estate.
- Gift is of a unique, identifiable item (e.g., 'my car,' 'my coin collection').
- If the item is not in the estate at death (adeemed), the beneficiary typically gets nothing.
- Often carries priority over general or residuary gifts during abatement.
Memory trick: Specific is Special, General is Generic, Demonstrative is Derived, Residuary is Remaining.