Where the thing bequeathed is not the right to receive something of value from a third person, but the money or other commodity which may be received from the third person by the testator himself or by his representatives, the receipt of such sum of money or other commodity by the testator shall not constitute an ademption; but if he mixes it up with the general mass of his property, the legacy is adeemed.
Illustration
A bequeaths to B whatever sum may be received from his claim on C. A receives the whole of his claim on C, and sets it apart from the general mass of his property. The legacy is not adeemed.
Legal Commentary & Landmark Judgments: Section 162
Section 162 governs ademption where a specifically bequeathed valuable to be received from a third party is received by the testator himself or his authorized representative.
In disputes over insurance claims or land acquisition compensation specifically bequeathed, check bank credit timestamps: if credited after the exact minute of death, Section 162 confirms the funds belong entirely to the specific legatee.