See Wills (ademption). A court avoids the doctrine of ademption by: (1) Construction of the gift as a general legacy, (2) Construction referring to property owned at death, (3) Construction as a change in form, (4) Gifts of proceeds of sales. Under 'a construction as a change in form' ademption will not be applied if there is only a slight change in form or in the name of an asset. A gift of the proceeds of a sale can avoid ademption if the will provides that an item or property can be sold and the proceeds be given to a specific beneficiary. The beneficiary may be entitled to the proceeds even if the item was sold before the testator's death.
The UPC avoids the doctrine of ademption as follows: Casualty insurance proceeds and eminent domain proceeds paid after death on a specific item are paid to the beneficiary. The ademption rule is not applied if specifically devised property is subject to an executory contract. Securities are paid to a beneficiary in spite of merger, consolidation, or reorganization. Property sold by a guardian entitles the beneficiary to a general legacy equal to the amount of the specific legacy.