Brief Fact Summary. The Appellant, Peggy Swanson (Appellant), brings action claiming she is entitled to inherit her deceased husband’s remainder interests held in a trust created by his father.
Synopsis of Rule of Law. A vested remainder can be inherited.
Issue. Whether the Appellant is entitled to inherit her deceased husband’s remainder interests held in a trust created by his father?
Held. Reversed. The interest in the trust passes to the Appellant under the terms of his will because (i) his remainder was vested; (ii) no condition subsequent occurred prior to the termination of the life estate; (iii) there is no language in the husband’s will that manifests a intent for the Appellant not to inherit the trust interest and case law supports this holding.
Discussion. Vested future interests held in trust can be devised by will. A vested future interest is one created in an existing and ascertained person and not subject to a condition precedent. The holder of the vested remainder has a right to immediate possession upon normal termination of the preceding estate.