What does "lapsed gift" mean in Ontario Estates Law?

In Ontario Estates Law, a "lapsed gift" refers specifically to a situation where the beneficiary of a gift within a will has predeceased the testator, meaning they passed away before the person who created the will. As a result, the gift is considered to have 'lapsed' because there is no longer a living beneficiary to receive it.

When this occurs, the gift does not go to the intended beneficiary's heirs unless the will specifies an alternate arrangement, leading to the gift typically falling back into the estate for distribution according to the laws of intestacy or the provisions outlined in the will itself.

The other options presented do not accurately define a lapsed gift. A delayed distribution refers to timing issues rather than the legal status of the gift itself, the automatic return to the estate is a consequence of the lapse but is not the primary definition, and failing to meet legal requirements relates more to challenges against the validity of a gift than its lapsing due to beneficiary status.