Smith v. Smith

143 S.E.2d 300, 265 N.C. 18, 1965 N.C. LEXIS 938
Supreme Court of North Carolina·Decided July 23, 1965·No. 604·Published·Cited by 17 cases

Opinions

Moose, J.

This is a special proceeding, instituted pursuant to G.S. 29-30 whereby petitioner elects to take life interest, in lieu of her share in fee, in the homeplace of which her husband died seized.

Almon F. Smith died intestate on 11 December 1961, survived by his widow Rubie L. Smith, petitioner herein, and a son Frederick D. Smith, one of the respondents herein. Frederick is the child of deceased by a former wife and is stepson of Rubie. Rubie qualified as administratrix of Almon’s estate on 22 December 1961.

On 19 January 1962 Frederick executed and delivered to Wiley Narron, Trustee, a deed of trust conveying his one-half undivided interest in the lands of which his father died seized, to secure the payment of a note of even date payable to L. Austin Stevens on 1 January 1963.

On 28 April 1962 Frederick executed and delivered to Rubie a warranty deed conveying the same realty to her in fee simple. Included in this conveyance was his one-half undivided interest in the homeplace where Rubie resided with Almon until the time of his death, and where she has resided at all times since. On 9 May 1962 Frederick instituted an action to set aside the deed for fraud in its procurement, alleging he signed the deed while intoxicated thinking it was a note for money advanced, the consideration was inadequate, and Rubie had taken advantage of her fiduciary relationship as administratrix. There was a verdict in favor of Frederick and judgment was entered on 4 April 1963 declaring the deed void. Rubie appealed to Supreme Court.

In the meantime, early in February 1963, Narron, Trustee, because of default of Frederick, undertook to foreclose the deed of trust and advertised the property for sale — sale date 4 March 1963. On the date of the sale, Rubie, individually and as administratrix, filed a suit to enjoin the foreclosure, alleging that she, individually, was the sole owner of the property and it was subject to sale to make assets to pay the debts of her late husband and Frederick had warranted against encumbrances. This sale was conducted, but on 8 March 1963 a temporary restraining order was issued enjoining consummation of the sale. On 19 March 1963 the restraining order was continued to the final hearing.

[22] The Supreme Court affirmed the judgment of the superior court in the fraud case, and the opinion (Smith v. Smith, 261 N.C. 278, 134 S.E. 2d 331) was certified to the clerk of superior court on 7 February 1964.

On 4 May 1964 Rubie filed with the clerk of superior court an ex 'parte petition and notice of election to take life interest in the home-place, in lieu of one-half interest in all of the lands of her late husband in fee. She requested the clerk to make an order permitting the election to be filed in accordance with G.S. 29-30. The clerk declined to enter any order until Frederick and other interested persons were made parties, served with summons and had opportunity to answer.

On 27 June 1964 a judgment was entered in the suit to enjoin the foreclosure of the deed of trust, dismissing same on the ground that the opinion in Smith v. Smith, supra, rendered the action moot.

On 6 August 1964, by consent of interested parties, the clerk entered an order in the election proceeding, permitting Rubie to file her notice of election as provided by G.S. 29-30 and have summons issued for interested parties, without prejudice 'to interested parties in their right to contest the election. Summons was issued 20 August 1964 and the same, together with petition and notice of election, was served on respondents herein, Frederick D. Smith and E. V. Wilkins, Trustee. Respondents filed separate answers contesting petitioner’s right to make an election and alleging that petitioner was guilty of laches, had previously made an election to take under the provisions of G.S. 29-14 one-half of the real estate in fee, and was estopped by her fraud in the procurement of the deed from Frederick which had been set aside. Wilkins, named trustee in a second deed of trust from Frederick D. Smith dated 4 April 1963, also defended on the further ground that the holders of the note secured by the deed of trust “are innocent purchasers for value without any notice of defects.” The proceeding was transferred to the civil issues docket for the judge to pass on the pleas in bar.

The matter was heard by Hobgood, J., and judgment was filed on 18 November 1964. The judgment finds as a fact that at the time the petition and notice of election were filed on 4 May 1964 there were actions pending in the superior court of Johnston County which “did involve the share and interest of the said Rubie L. Smith ... in said lands,” and that the “request and petition for the written order was made within apt and reasonable time within the meaning of the statute.” The pleas in bar were overruled. It was decreed that petitioner “is hereby permitted and allowed to file her notice of election to take a life estate ... as of May 4, 1964,” and that the proceedings are remanded to the clerk for an order carrying out this judg[23] ment “and for orders allotting the life estate of the surviving spouse as provided by G.S. 29-30.” Respondents appeal from this judgment.

If an intestate is survived by only one child, the share of the surviving spouse shall be one-half of the net estate, including a one-half interest in the real property. G.S. 29-14. The surviving spouse may elect and is entitled to take, in lieu of the share provided in G.S. 29-14, a life estate in one-third in value of all of the real estate of which the deceased spouse died seized. The life estate shall, at the election of the surviving spouse, include a life estate in the usual dwelling house occupied by the surviving spouse at the time of the death of the deceased spouse, together with the outbuildings, improvements and easements thereunto belonging and appertaining, and lands upon which they are situated and reasonably necessary for the use and enjoyment thereof — this, regardless of the value and despite the fact that the life estate might exceed the said one-third value limitation. G.S. 29-30 (a), (b). Such election shall be made within one month after the expiration of the time limited for filing claims against the estate, if letters of administration are issued within twelve months after the date of the deceased spouse. G.S. 29-30 (c)(3). But, if litigation that affects the share of the surviving spouse in the estate is pending, then within such reasonable time as may be allowed by written order of the clerk of the superior court. G.S. 29-30 (c)(4).

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Smith v. Smith, 143 S.E.2d 300, 265 N.C. 18, 1965 N.C. LEXIS 938 (N.C. 1965).

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