What is it called when the value of a bequest decreases due to a decline in the asset's value before the testator's death?

The term that describes a situation in which the value of a bequest decreases due to a decline in the asset's value before the testator's death is known as abatement. In the context of inheritance, abatement occurs when the value of certain assets or bequests diminishes as a result of depreciation or market fluctuations. When the estate is being distributed, if the value of the assets lessens, the bequests may be adjusted accordingly, leading to a situation where beneficiaries receive less than initially intended.

This concept is important in estate planning as it underscores the need for careful consideration of asset values when preparing a will. The decrease in value impacts how assets are distributed and can lead to disputes among beneficiaries, emphasizing the significance of monitoring and assessing asset value over time.

Other terms, while related to estate management, refer to different processes. Ademption describes the situation when a specific bequest is no longer part of the estate due to the testator's actions, such as selling the item intended to be bequeathed. Accretion typically refers to the gradual increase in value or growth of an asset, while depreciation conveys the general concept of value decline but does not specifically relate to bequests and inheritance handling in the same legal context as abatement