- 15 -
Under decedent's will, if the bequest to her daughter failed, the
stock would pass to the surviving spouse as the residuary
beneficiary. Since the surviving spouse had no insurance
business experience, and was not licensed to sell insurance,
respondent argues that decedent would never have allowed her
husband to inherit 75 percent of the agency's stock.
Respondent's alternative argument is that the language
created a condition subsequent. A condition subsequent under New
Jersey law would cause the stock to vest immediately in Patricia
Low but she would subsequently be divested of it if she failed to
make the payments. Tizard v. Eldredge, 25 N.J. Super. 477, 481,
96 A.2d 689, 691 (1953).
Respondent cites various New Jersey cases to aid in
construing decedent's will. New Jersey courts do not favor
conditions in wills. Parmentier v. Pennsylvania Co. for Ins.,
122 N.J. Eq. 25, 30, 192 A. 62, 65 (1937), affd. 124 N.J. Eq.
272, 1 A.2d 332 (1938). However, if the testator's intent shows
that a condition is intended, then conditions subsequent are
favored over conditions precedent. Id. Respondent also points
out that if the language in question created a condition
precedent, as petitioner contends, then the stock ownership could
have been in limbo for 10 years had Patricia Low made the
payments, a situation that decedent would not have intended.
Respondent cites Tizard, which states: "Where there is a
prolonged period of time prescribed by the words of the bequest
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011