In The Matter of the Estate of Nellie Ellis, Charles W. Moore. v. Clyde Green

This case involves the interpretation of a remainder interest granted in a will. The decedent's husband bequeathed to the decedent a life estate in stock in a family-owned business, with the remainder to go 50% to his "living heirs" and 50% to "some deserving person in the music department at Belmont College." After her husband's death, the decedent purchased the remainder interest in the stock from all of the remaindermen. By virtue of this purchase, the decedent presumed that she owned the stock outright. At her death, her will included a bequest of the stock. Her heirs brought this declaratory judgment action, seeking a declaration that the decedent did not own the stock at her death. They argued that the decedent's purchase of the remainder interest in the stock was invalid because the remaindermen did not own a vested interest in the stock at the time of the husband's death. The trial court found that the case was barred by the statute of limitations and that the decedent had, in fact, acquired 100% ownership in the stock. The heirs now appeal. We affirm, finding that the remaindermen in the husband's will acquired a vested, transmissible remainder interest in the stock at the husband's death.