Which principle applies to proceeds from property damaged or destroyed before the decedent's death?

The principle that applies to proceeds from property that has been damaged or destroyed before the decedent's death is that the beneficiary of a specific bequest is entitled to the insurance proceeds. This is grounded in the notion that the original intended gift, although physically destroyed, is still considered part of the decedent's estate. When a specific piece of property is bequeathed to a beneficiary and that property is subsequently damaged or destroyed (such as through a fire or natural disaster), any insurance proceeds received as compensation for that property generally vest in the beneficiary as though the property itself had been delivered.

This principle is significant because it ensures that the intent of the decedent is honored: even if the specific asset is gone, the value derived from it – in this case, the insurance proceeds – still flows to the intended beneficiary. In practice, this means that if a specific bequest is made and that bequest is lost, the beneficiary is likely not disadvantaged by the loss, as they receive a substitution that compensates for the loss of the property itself.

In contrast, other options presented fail to recognize the specific nature of bequests and the treatment of insurance proceeds in relation to them. The ademption doctrine, which typically applies when a specific bequest is