Reversing lower courts, New Jersey's highest court finds that, under the doctrine of probable intent, a decedent intended the "payment of all just debts" clause in his will to pay off mortgages on both his houses, not just the one specifically mentioned in his will. In the Matter of the Estate of Payne (N.J., No. A-12-05, April 20, 2006).
Ted Payne owned a home in New Jersey that he lived in with his partner, Don Burton. He also co-owned a property in Maine with a friend. Mr. Payne drafted his will, leaving the New Jersey property to Mr. Burton and including a provision to pay off the entire mortgage on the Maine property. His will also included a provision for his estate to pay all "just debts." Mr. Payne told Mr. Burton he believed that provision meant his estate would pay off the entire mortgage on the New Jersey property, as well. In making revisions to the will, Mr. Payne wrote his lawyer a letter stating he wanted his "properties" to pass to the "beneficiaries" without any debt.
When Mr. Payne died, Mr. Burton filed a claim against the estate, asking it to pay the mortgage. The court denied Mr. Burton's claim, holding that because his will had a provision to pay of the debts on the Maine property, but not the New Jersey property, this evidenced Mr. Payne's intention not to pay off the debt on the New Jersey property. Mr. Burton appealed, and the appellate court affirmed. Mr. Burton appealed again.
The Supreme Court of New Jersey reverses, holding that the lower courts improperly applied the doctrine of probable intent. According to the court, Mr. Payne's letter to his lawyer clearly and unambiguously showed his intent to bequeath the property debt-free.
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