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Grandchildren not entitled to proceeds of land sale under will

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A Monroe Circuit judge did not err in denying a motion by three grandchildren to correct errors in which they claimed that they, instead of their grandmother’s second husband, should have received the proceeds of the sale of land in Bloomington. The Indiana Court of Appeals held the Bloomington residence was adeemed by extinction, so the proceeds of the sale pass to Cora Young’s second husband, Theodore.

In In the Matter of the Supervised Admin. of the Estate of Cora E. Young, deceased; Terry Douthitt, Kelly Douthitt, and Kevin Douthitt v. Theodore R. Young, 53A04-1301-EU-36, grandchildren Terry, Kelly and Kevin Douthitt appealed Judge E. Michael Hoff’s denial of their motion to reconsider. They claimed based on the language in Cora Young’s 1976 will, the proceeds of the sale of property in Bloomington should be distributed to them, not her second husband, at her death.

Cora Young sold her Bloomington property on May 2, 2012; she then purchased another property in Solsberry. She died testate on June 26, 2012. Her will said that she would bequeath certain property to her son, Dennis, upon her death and that the rest and residue of her property would go to Theodore Young. If he didn’t survive her, then any property not attributable to his heirs would go to Dennis Douthitt.

Cora Young’s son died before her and she never changed her will to specifically reference the grandchildren.

Hoff held that the proceeds from the sale of property should be distributed to Theodore Young. Since the property was no longer owned by her at the time of her death, it was adeemed by extinction and the proceeds would go through the residuary clause of the will and go to her husband.

The grandchildren argued that the clause “excepting what m[a]y be the proceeds of any of the items mentioned in item two” clearly excepts the proceeds of the sale from the residuary clause and bequeaths them to their father, Dennis. But the COA found this particular clause was not specific enough to overcome the clear doctrine of ademption by extinction and except the proceeds of the sale of the Bloomington residence out of the residuary clause. The proceeds of the sale must go to the residuary beneficiary named in the will – her husband.



 

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