An estate trustee sought directions regarding interpretation of a will that created conditional gifts of $150,000 to each of the testator’s three sons, contingent upon purchasing real property secured by a mortgage to the estate.
The will also established a residue trust for future grandchildren to be divided ten years after death.
The court considered principles of will interpretation and extrinsic evidence regarding the testator’s intentions as a real estate investor.
The court held that each son must own real property for a cumulative period of ten years for the gift to vest, beginning when the property is acquired, and that the estate must ensure adequate security through mortgage equity before advancing funds.
The court further ruled on related issues concerning repayment on sale, mortgage priority, trust duration, and residual beneficiaries.
