Williams v. Burgett

Summary

The Alabama Supreme Court held that traceable proceeds from timber sold by a life tenant remained part of the estate subject to the testator’s remainder provision. Although the life tenant had an absolute power of disposition, the proceeds placed in jointly held certificates of deposit passed to the remaindermen upon her death. The court reversed the probate court’s judgment in favor of the surviving joint tenant and remanded.

Holdings

1. Under Ala. Code 1975, § 35-4-292(a), traceable proceeds from the sale of property subject to a life estate with an absolute power of disposition remain part of the estate subject to the remainder interest if they remain under the life tenant's power and control at death. The certificates of deposit therefore passed to the remaindermen rather than to Burgett as surviving joint tenant.
2. Nevin v. Nevin does not control because it concerned whether gratuitous grantees were purchasers under §§ 35-4-292 and 35-4-34, whereas Burgett was not a purchaser and this case concerns traceable proceeds rather than a conveyance of the property.

Questions Presented

1. Whether, upon the death of a life tenant who held an absolute power of disposition, the remaindermen are entitled to traceable proceeds from the life tenant's sale of estate assets when those proceeds remain under the life tenant's power and control at death.
2. Whether Nevin v. Nevin controls when property subject to a life estate and an absolute power of disposition is conveyed to a gratuitous grantee.

Disposition

reversed_and_remanded