Advancement

Business, Legal & Accounting Glossary

Definition: Advancement


Advancement

Quick Summary of Advancement


A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child’s or heir’s eventual share in the estate after the giver’s death.




What is the dictionary definition of Advancement?

Dictionary Definition


n. a gift made by a person to one of his or her children or heirs (a presumptive heir since an heir is only determined on the date of death) in anticipation of a gift from the still-living parent’s potential estate as an advance on one’s inheritance. Example: John Richguy is going to leave his son $100,000 under his will or a percentage of the estate on John’s death. John gives the son $50,000 with the intention that it would be deducted from the inheritance. The main problem is one of proof that the advanced sum was against the projected inheritance. A person making an advancement should leave a written statement about the advancement or get a signed receipt. Such gifts made shortly before death are more readily treated as an advancement than one made several years earlier.


Full Definition of Advancement


An advancement is not the same as a gift or a loan because the person intends that the “advance” of the heir’s share of the estate be applied against what the heir would normally inherit. Although sometimes used to describe situations involving both people who have died intestate (without leaving a valid will) and people who have left a will, the term advancement should be used only when there is no valid will. The laws of descent and distribution regulate the distribution of an intestate’s property. The term ademption applies to lifetime gifts that reduce a beneficiary’s share under a will.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/advancement/
Modern Language Association (MLA):
Advancement. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
January 17, 2022 https://payrollheaven.com/define/advancement/.
Chicago Manual of Style (CMS):
Advancement. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/advancement/ (accessed: January 17, 2022).
American Psychological Association (APA):
Advancement. PayrollHeaven.com. Retrieved January 17, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/advancement/

Definition Sources


Definitions for Advancement are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th October, 2021 | 5 Views.