In Re Estate Of Holden

539 S.E.2d 703 (2000)

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Nature of the Case

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Facts

Sr. died intestate. He was survived by his wife Julia S. Holden, two sons P, and Robert Holden, and one grandchild. A second grandchild was born within ten months of Sr.'s death. The sons filed disclaimers of their interests in the estate. They stated: 'I hereby disclaim and renounce any interest in the estate and relinquish any claim I may have to it.' Their attorney's letter accompanying the filing describes the disclaimers as 'Disclaimers of the decedent's children in favor of the decedent's spouse.' The personal representative distributed the proceeds of the estate to Julia. The probate court informed P that, as a result of the Sons' disclaimers, the two grandchildren, as Father's lineal descendants, may inherit a portion of the estate. The sons then executed a document entitled 'Revocation and Withdrawal of Disclaimer' which provides, in part: '. . . it was my intent in entering into this said Disclaimer and Renunciation of Interest to disclaim and renounce my intestate interest in favor of [Julia] . . . the spouse of [Sr], so that she would become the sole heir of the Estate; . . .'. The probate court appointed a guardian ad litem for Grandchildren and conducted a hearing. The probate court held the disclaimers were valid for federal tax law purposes and the revocations were ineffective. The court ordered 50% of the estate's assets distributed to Grandchildren. The circuit court held the attorney's filing letter expressly provided Sons intended to direct their interest in the estate to their Mother. Concluding this intention was contrary to applicable provisions of the Internal Revenue Code, the circuit court held the disclaimers ineffective. The Court of Appeals held the disclaimers were valid and reversed the circuit court. P appealed.