VanSickle Estate v. VanSickle concerns the interpretation of a Last Will and Testament.
The testatrix and her husband ran a small farm operation for many years. At one time the farming operations included livestock as well as crops. Livestock operations at the farm ended before 1992. The testatrix’s husband, Mr. Vansickle died in 1994, and the testatrix began to rent out the farmland to her oldest son, Howard. Howard continued renting the farm until the death of the testatrix. All of the children assisted with the farm at one point while growing up, Howard significantly invested time in working on the farm.
The testatrix and her husband had executed mirror wills in January 1985. The Wills contained identical clauses allowing Howard the option to purchase, within one year of the testator’s/testatrix’s death, the “farm business carried on by the [the Testator]”.
On the testatrix’s death, in 2019, a dispute arose concerning Howard’s right to exercise the option to purchase the farm business. Specifically, a dispute arose regarding the wording of the option, which stipulated the farm business could be “carried on”. The application judge concluded that the farm was not carried on by the testatrix at the time of the death as Howard was renting out the farm for several years prior to her death. The application judge reasoned that to construe business to mean renting the farmland would be inconsistent with the qualifying phrase “carried on by me”.
On appeal, the Court allowed the appeal, set aside the judgement of the application judge, and provided the appellant Howard VanSickle with a declaration that the Will provided him with the option of purchasing the farm business and he exercised the option according to its terms. The Court reasoned that as the testatrix owned the farmland and leased out the farm, she received income from the lease. Further, she declared the income from the farm on her income taxes as farm income. Further, on each tax term, she indicated that it would not be the final year of farming. As the testatrix declared income on the farm and declared it was not the last year of farm, this meant that the farm business was being “carried on” by her.
This case is a reminder to draft Will clauses with caution and not draft them too restrictively which would cause ambiguity regarding their interpretation.
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