Lapse

Business, Legal & Accounting Glossary

Definition: Lapse


Quick Summary of Lapse


The termination of an insurance policy due to the fact that a renewal premium is not paid by the conclusion of the grace period.



What is the dictionary definition of Lapse?

Dictionary Definition


  • v. to fail to occur, particularly a gift made in a will.
  • v. to become non-operative.
  • n. the termination of a gift made by will or for future distribution from a trust, caused by the death of the person to whom the gift was intended (the beneficiary, legatee, devisee) prior to the death of the person making the will or creating the trust (the testator, trustor or settlor).
  1. A temporary failure; a slip.
  2. A decline or fall in standards.
  3. A pause in continuity.

Full Definition of Lapse


Under a will, the failure of a gift of property. A gift lapses when the beneficiary dies before the person who made the will, and no alternate has been named. Some states have anti-lapse statutes, which prevent gifts to relatives of the deceased person from lapsing unless the relative has no heirs of his or her own. A lapsed gift becomes part of the residuary estate.


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/lapse/
Modern Language Association (MLA):
Lapse. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 04, 2020 https://payrollheaven.com/define/lapse/.
Chicago Manual of Style (CMS):
Lapse. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/lapse/ (accessed: July 04, 2020).
American Psychological Association (APA):
Lapse. PayrollHeaven.com. Retrieved July 04, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/lapse/

Definition Sources


Definitions for Lapse 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: 28th April, 2020 | 1 Views.