Company Shares - Remainderman predeceases the Life Interest holder

Hi there,

I would be grateful if someone could give me some advice. I think I already know the answer - but I have not practised in this area for a few years, so just need some clarity!

Testator died leaving a successful company. He left his shares in that company to his wife for her lifetime, and upon her death to his son absolutely.

The son predeceased the wife. There was no provision in the Will for this.
I think the shares pass into the estate of the son as remainderman. Is this correct? If so would you be able to point me to the authority for this?

However, is there any possibility that the gift fails and the shares pass under intestacy to the Testator’s other children in equal shares?

Many thanks in advance for any assistance you can give.

L Gilmore
CS Law

If the will is silent on what might happen if the son predeceased the wife, it is likely that the son’s interest vested on the death of the testator (although a detailed reading of the will would be needed to ensure that there is no requirement that the son survive both the testator and the widow).

If the son’s entitlement vested on the testator’s death, then, yes, the trust fund will fall into the son’s estate.

Paul Saunders

Hi Paul

Thank you very much for this. No requirement in Will for the son to survive testator and wife. The son died 3 years after testator so I think you are right, ie that it goes to his estate. Thanks again for your help.

L Gilmore
CS Law