New Hampshire Supreme Court Holds That Testator’s Sale of Stock Was Ademption of Bequest

The decedent’s will provided that all of his intangible person property, save his shares in a closely held corporation, were to go to the decedent’s mother. The will provided that the residue, specifically naming the shares of stock, were to go to the decedent’s revocable trust. Ten months before the decedent died, however, he sold the stock for $15 million. After the decedent’s death, his family filed a petition seeking a declaration that the $15 million passed to the trust upon the decedent’s death.

In In re Estate of Donovan, No. 2010–297, 2011 WL 1620576 (N.H. April 28, 2011), the New Hampshire Supreme Court upheld the lower court’s ruling, finding that the decedent’s sale of the stock was an ademption which served to nullify the bequest to the trust. The court awarded the stock proceeds to the testator’s mother.

Special thanks to William LaPiana (Professor of Law, New York Law School) for bringing this case to my attention.