Hansen v. Vinal
Decision Date | 23 July 1969 |
Docket Number | No. 19352.,19352. |
Citation | 413 F.2d 882 |
Parties | Neta May HANSEN, Executrix of the Estate of Otto H. Hansen, Deceased, Appellant, v. Richard P. VINAL, Appellee. |
Court | U.S. Court of Appeals — Eighth Circuit |
Edgar R. Geesaman, of Fitzgerald, Brown, Leahy, McGill & Strom, Omaha, Neb., for appellant.
Chester C. Davenport, Atty., Dept. of Justice, Tax Div., Washington, D. C., for
appellee; Mitchell Rogovin, Asst. Atty. Gen., and Lee A. Jackson and Robert N. Anderson, Attys., Dept. of Justice, Tax Div., Washington, D. C., and Theodore L. Richling, U. S. Atty., Omaha, Neb., on the brief.
Before GIBSON, LAY and HEANEY, Circuit Judges.
The sole issue on this appeal is whether the District Court erred in holding that the decedent's estate failed to qualify for the marital deduction allowed by Section 2056, Internal Revenue Code, 1954, because the property interest passing from decedent to his wife was a terminable interest.
The case was tried to the court upon an agreed stipulation of facts and exhibits summarized by the trial court as follows:
The decedent's will provides in part:
The Commissioner successfully argued below that the interest passing to the decedent's widow was a terminable interest within the meaning of Section 2056. Section 2056 provides, in part, as follows:
The trial court found that the decedent had clearly and validly conditioned his grant to his wife upon her survival for a period of time after his death. The operative language of the will creating this condition was that the survivor, Mrs. Hansen, "should live long enough to probate the will."
The trial court found that while the event of probate might occur within six months of the decedent's death, it need not necessarily occur within six months, and, therefore, the grant failed to qualify for the marital deduction allowed by Section 2056.
The widow contended below and contends here that the interest passed by her husband was unconditional and vested indefeasibly at his death. In the alternative, she contends that if the grant was conditional, the condition was not the occurrence of an event but was rather the passage of a period of time which was within the six month limitation. Neither contention can be sustained.
While the nature of the interest passed is determined by state law,1 and while the applicable state laws favor early and indefeasible vesting of estates, each state recognizes the validity of an estate subject to a condition.2 A condition was imposed here — that the survivor live long enough to probate the will of the first to die. This condition can only be fulfilled by a judicial act — a determination by the proper court that the instrument offered is the validly executed last will and testament of the deceased.3
Mrs. Hansen contends that the condition violates the public policy of the states which favor the early indefeasible vesting of estates. She argues that since the trial court found by implication that the event of probate may never occur, the status of the title to the real estate would remain unresolved at least until her death. Such a result would be contrary to public policy and the testator's intent.
In our view, the trial court correctly concluded that the condition was not violative of state public policy nor the testator's intent.
The statutory law of Nebraska requires that the will of a deceased person be filed, by the custodian or executor of the will within thirty days of the testator's death or within thirty days after a person learns he has been named executor if he obtains such knowledge after the testator's death, under pain of criminal liability. Revised Statutes of Nebraska, 1943, Reissue 1964, §§ 30-213-216.4 We must presume that these laws will be complied with and that the instrument will be delivered to the court. When this has been done, the court will make a prompt judicial determination as to whether or not the instrument is the last will and testament of the deceased.
The only circumstance which could reasonably be expected to delay or prevent the indefeasible vesting is a contest of the will — an event that can and does occur whether a devise is subject to a condition or not.
The appellant's contention that the second clause "or in the event the survivor should not live long enough to probate the will of the first to die" relates back to the first clause (common disaster), "In the event we the joint makers of this will should be taken from this life at or about the same time," must be answered in the negative.5
Mrs. Hansen apparently contends that the second clause merely places a time limitation within which the second death resulting from a common disaster must occur in order to be considered a death resulting from a common disaster. If paragraph four is construed in this manner, it is only operative to condition the grant when there is a common disaster. Since a common disaster did not occur, paragraph four does not condition the estate granted Mrs. Hansen in paragraph two. Thus, she would be entitled to the marital deduction allowed under Section 2056.
We cannot accept this construction. We hold that the second clause does not modify the first clause. The two clauses are used in the disjunctive. The only reasonable construction which can be given paragraph four is that the testator intended to qualify for the marital deduction allowed under Section 2056(b) (3) by providing for the death of both spouses as a result of a common disaster through the first clause and by providing for the successive death of both spouses within a limited period of time through the second clause.
Was the conditional estate passed by the testator a terminable interest within the meaning of Section 2056?
The trial court held that the grant by testator to his widow was a terminable interest within the...
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...a period in excess of 6 months. The case most nearly comparable to the instant case which has come to our attention is Hansen v. Vinal, 413 F.2d 882 (C.A. 8, 1969). That case involved a testator among whose assets were included real estate located in Nevada and Colorado. His will provided: ......
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