Case Name: Kenneth W. NEWBURY, Executor of the Estate, of Kate E. Fults, Deceased, Plaintiff-Appellee, v. Thelma McCAMMANT, E. J. Watt, Elizabeth Tatem, Ardis Peterson, Harold Watt, Patricia Nagle, Billy Jean Michelson, Katherine Marline Felts, and Rose Watt, Defendants-Appellants, Ray Fults, Clinton Fults, Fred Fults, Harold Fults, T. R. Fults, and Mrs. Arnold Edming, Defendants-Appellees
Court: Iowa Supreme Court
Jurisdiction: Iowa
Decision Date: 1970-12-15
Citations: 182 N.W.2d 147
Docket Number: No. 54062
Parties: Kenneth W. NEWBURY, Executor of the Estate, of Kate E. Fults, Deceased, Plaintiff-Appellee, v. Thelma McCAMMANT, E. J. Watt, Elizabeth Tatem, Ardis Peterson, Harold Watt, Patricia Nagle, Billy Jean Michelson, Katherine Marline Felts, and Rose Watt, Defendants-Appellants, Ray Fults, Clinton Fults, Fred Fults, Harold Fults, T. R. Fults, and Mrs. Arnold Edming, Defendants-Appellees.
Judges: STUART, MASON, BECKER and UHLENHOPP, JJ-, concur.
Reporter: North Western Reporter 2d
Volume: 182
Pages: 147–153

Head Matter:
Kenneth W. NEWBURY, Executor of the Estate, of Kate E. Fults, Deceased, Plaintiff-Appellee, v. Thelma McCAMMANT, E. J. Watt, Elizabeth Tatem, Ardis Peterson, Harold Watt, Patricia Nagle, Billy Jean Michelson, Katherine Marline Felts, and Rose Watt, Defendants-Appellants, Ray Fults, Clinton Fults, Fred Fults, Harold Fults, T. R. Fults, and Mrs. Arnold Edming, Defendants-Appellees.
No. 54062.
Supreme Court of Iowa.
Dec. 15, 1970.
Rehearing Denied March 9, 1971.
Finley & Teas, Mason City, for appellants. *
Whitesell Law Firm, Iowa Falls, for ap-pellee.
Johns, Flaherty, Harman & Gillette, LaCrosse, Wis., for defendants-appellees Harold Fults, T. R. Fults, and Mrs. Arnold Edming.

Opinion:
RAWLINGS, Justice.
By declaratory judgment action, Kenneth W. Newbury, executor of the estate of Kate E. Fults, deceased, seeks a construction of Articles VI and VII of decedent's will, more particularly as to whether the Article VI bequest adeemed. Trial court held it did and the property involved passed as residue. Adversely affected defendants appeal. We reverse.
Plaintiff executor takes no part in these appellate proceedings. The contest here is solely between two groups of defendants. For brevity, Article VI devisees will be sometimes referred to as appellants, Article VII residuary beneficiaries as appellees.
Testatrix, by Article VI of her will, dated June 23, 1961, directed certain described real property be sold by the executor and proceeds realized therefrom distributed to appellants or their respective relatives. By Article VII she directed the residue be distributed to appellees, three of whom do not participate herein. Subsequently testatrix executed two codicils which did not change the controverted articles.
September 16, 1966, testatrix entered into a contract for sale of the real estate described in Article VI, the sale price being $65,000, payable in installments of principal plus accrued interest, last payment due January 2, 1972. Time was of the essence and buyers took immediate possession. The contract is specifically made binding on the heirs, legal representatives, successors in interest and assigns of all parties.
In May 1968, testatrix died with $37,000 principal and $574.56 accrued interest owing on the contract. There was also $3,-351.47 then on deposit in a bank, designated "Farm Account".
The basic issue presented on this appeal is propriety of trial court's holding that the Article VI gift stood adeemed.
Appellants concede, as to any sale proceeds intermingled by decedent with other assets, or otherwise used by her prior to death, the ademption concept applies. They claim, however, trial court erred in holding the unpaid portion of proceeds from sale of the supporting realty adeemed and must resultantly pass with the residue.
I. The problem at hand is neither new nor novel. Commissioners of Emperor Justinian, describing the Roman law of legacies, said:
"If a testator bequeath his own property, and afterwards alien, it is the opinion of Celsus, that the thing bequeathed will become due to the legatee, if the testator did not dispose of it, with an INTENTION to oust him. The emperors Severus and Antoninus have published their rescript to this effect; and they have also signified by another rescript that a legacy afterwards pawned or mortgaged, shall not be considered as retracted; and that the legatee may bring suit against the heir and oblige him to redeem. And, if but a part of the thing bequeathed be aliened, that part which remains unal-iened, is still due; and that, which is aliened, is only due, if it appear not to have been aliened by the testator WITH A DESIGN to retract the legacy." (Emphasis supplied) Institutes, (T. Cooper, 3rd ed.), 2.20.12.
This reasoning formed a portion of ancient Roman law relative to destruction of legacies, differing in several respects from the ultimately evolved common law. Ademption by Extinction: Its Practical Effects, 18 Wis.L.Rev. 11.
Early common law scholars relied heavily on the Roman Ademptio. Resultantly the quoted passage, inter alia, constituted a substantial basis for the common law of ademption. Ademption by Extinction: Its Practical Effects, 18 Wis.L.Rev. 11, 15-33;
The History of Ademption, 25 Iowa L.Rev. 290, 297; 6 Bowe-Parker: Page on Wills, § 54.1; 3 American Law of Property, (Casner ed.), § 14.13 at 606-607.
II. There has long been a divergence of opinion, however, as to proper operation or application of the ademption rule. Annot. 165 A.L.R. 1032. See The History of Ademption, 25 Iowa L.Rev. 290; 3 American Law of Property, (Casner ed.), § 14.13 at 607-608.
Historically the courts of this country, and England, in early times followed the dictates of Justinian, holding testator's intention crucial to operation of the doctrine. The History of Ademption, supra at 304; Ademption by Extinction: Its Practical Effects, supra at 15-18; 3 American Law of Property, (Casner ed.), § 14.03 at 607. There then came a period during which judicial tribunals encountered troublesome problems or witnessed opportunities for abuse in application of the pure intention theory. Seeking a practical solution, they held ademption occurred, regardless of testator's intention, if property specifically bequeathed was not found in the estate on death. See The History of Ademption, supra at 308-316; Ademption by Extinction: Its Practical Effects, supra at 18-19; cf. 6 Bowe-Parker: Page on Wills, § 54.15. We followed this strict identity theory in the case of In re Will of Miller, 128 Iowa 612, 105 N.W. 105 (1905), there holding a testamentary gift of proceeds to be realized from a postdeath disposition of specific realty was revoked by decedent's pre-death sale of the supporting res, with mortgage taken for unpaid portion of the sale price. That position is adhered to in many jurisdictions. See 6 Bowe-Parker: Page on Wills, § 54.15. But this application of the doctrine was often harsh and frequently at odds with testator's intention. See Id. § 54.19; Ademption by Extinction: Its Practical Effects, supra at 25-26.
More recently we have therefore taken the position, at least sotto voce, the Justinian concept of intention is involved in ap plication of the ademption principle, coupled with reliance on identity of the thing bequeathed or devised. See In re Estate of Bierstedt, 254 Iowa 772, 775-778, 119 N.W.2d 234; In re Estate of Sprague, 244 Iowa 540, 546, 57 N.W.2d 212. See also The History of Ademption, supra at 316— 317.
This appears to be entirely proper for it has long been held the primary consideration in will construction is intent of the testator. E.g., In re Estate of Lamp, 172 N.W.2d 254 (Iowa); In re Estate of Sprague, supra 244 Iowa at 543, 57 N.W.2d 212; In re Estate of Keeler, 225 Iowa 1349, 1352-1354, 282 N.W. 362.
And we resort to technical rules or canons of construction only if the language of a will is clearly ambiguous, conflicting, or testator's intent is for any reason uncertain. Ibid; In re Estate of Staab, 173 N. W.2d 866, 870-871 (Iowa); In re Estate of Roberts, 171 N.W.2d 269, 271 (Iowa); Wagg v. Mickelwait, 165 N.W.2d 829, 831 (Iowa). Our adherence to this precept is evident in relatively recent ademption cases. See In re Estate of Bierstedt, supra, and In re Estate of Sprague, supra. See also In re Estate of Stonebrook, 258 Iowa 1062, 1073, 141 N.W.2d 531.
III. It was at one time necessary to distinguish between a testamentary gift of personalty and realty, the former adeem-ing, the latter being revoked by operation of similar principles. See In re Estate of Bierstedt, 254 Iowa 772, 774, 119 N.W.2d 234; In re Will of Miller, 128 Iowa 612, 105 N.W. 105; The History of Ademption, 25 Iowa L.Rev. 290, 290-296.
Both personal and real property are now, however, equally subject to ademption. In re Estate of Bierstedt, supra; 3 American Law of Property, (Casner ed.), § 14.13 at 612-613, n. 56. See The Code 1966. Section 633.3.
IV. In situations where there has been a devise or bequest of some specific property of which testator, while competent, dispossessed himself prior to death, this court has repeatedly held the gift adeemed. E.g., In re Estate of Stone-brook, 258 Iowa 1062, 141 N.W.2d 531; In re Estate of Sprague, 244 Iowa 540, 57 N. W.2d 212; see In re Estate of Bierstedt, 254 Iowa 772, 119 N.W.2d 234. See also Stake v. Cole, 257 Iowa 594, 133 N.W.2d 714; In re Estate of Bernhard, 134 Iowa 603, 112 N.W. 86.
Those decisions are based on the premise that if identical property given is not found in the estate and testator intended other than ademption, he would have changed his will upon sale of the bequeathed or devised assets. E.g., In re Estate of Sprague, supra; see In re Estate of Bierstedt, supra; cf. In re Estate of Bernhard, supra-. The intention to adeem in such a situation is found within the four corners of the will by absence of the specifically devised or bequeathed property from the estate. Cf. In re Estate of Bern-hard, supra.
We now reaffirm the principle enunciated in cases such as In re Estate of Bier-stedt, and In re Estate of Sprague, both supra, regarding ademption of a testamentary gift in kind of specific property disposed of by a competent testator prior to death.
V. As a premise to further discussion it should be first noted, a will speaks as of date of death, prior thereto being fully ambulatory. In re Estate of Lundgren, 250 Iowa 1233, 1236-1237, 98 N.W.2d 839; In re Estate of Bernhard, 134 Iowa 603, 605-607, 112 N.W. 86; see The History of Ademption, 25 Iowa L.Rev. 290, 317-318.
Here the gift is of proceeds from specified realty to be sold upon testatrix' death.
By reason of directions to so sell, the equitable conversion doctrine became applicable. Thus the gift never had identity as specified realty. Rather, at the moment of death and all operative times, it was specific personalty. The Code 1966, Section 633.384; In re Estate of Sheeler, 226 Iowa 650, 661-662, 284 N.W. 799; In re Estate of Jackson, 217 Iowa 1046, 1050-1052, 252 N.W. 775; see In re Estate of Bernhard, supra. Stated otherwise, testatrix bequeathed an indefinite but identifiable sum to be realized from the sale of designated real estate.
It is to us clear, from the four corners of the will, testatrix intended by Article VI, this personalty be distributed to named beneficiaries.
VI. Unquestionably testatrix disposed of the supporting realty prior to death. Though she contractually retained and at time of death held a security interest, equitable title passed to the buyer. In re Estate of Lundgren, 250 Iowa 1233, 1236-1238, 98 N.W.2d 839; Junkin v. McClain, 221 Iowa 1084, 1089-1090, 265 N.W. 362; see Ingraham v. Chandler, 179 Iowa 304, 306-308, 161 N.W. 434; In re Estate of Bernhard, 134 Iowa 603, 606-607, 112 N. W. 86.
And, when testatrix entered into a contract for sale of the supporting real estate it was then, by operation of the aforesaid doctrine of equitable conversion, transmuted into personalty. See Briley v. Madrid Improvement Co., 255 Iowa 388, 394, 122 N.W.2d 824; In re Estate of Baker, 247 Iowa 1380, 1388, 78 N.W.2d 863; In re Estate of Bernhard, 134 Iowa 603, 606-607, 112 N.W. 86; 3 American Law of Property, (Casner ed.), § 14.13 at 611; cf. The Code 1966, Section 633.385(1).
Briefly stated, the remaining unpaid contractual proceeds are, (1) identifiable, (2) found in the estate, and (3) constitute identical property which testatrix intended should pass to appellants. As to such proceeds there is no ademption. See generally Wills-Ademption-Inapplicable Where Contract of Sale Follows Specific Devise of Land, 49 Iowa L.Rev. 623; 96 C.J.S. Wills § 1177h.
VII. With regard to any paid portion of the sale proceeds merged, however, with general assets of the estate or otherwise utilized or disposed of by testatrix prior to death, the rationale discussed in Bierstedt and applied in Sprague, both supra, governs. Resultantly the questioned gift stood adeemed pro tanto.
A partial ademption, i.e. pro tanto, is perfectly proper in such a situation. See '96 C.J.S. Wills § 1177h at p. 1004; Ademption by Extinction, 6 Wis.L.Rev. 229, 237. If testatrix intended otherwise she had ample opportunity, by changing her will, to so indicate.
In light of the foregoing we find, trial court erred in decreeing ademption as to remaining unpaid identifiable proceeds of the sale and now hold they must pass in accord with Article VI of the will. In other words, any balance owing at time of death on the contract to sell, including interest then due and thereafter accrued, does not here stand adeemed.
VIII. On the other hand, the $3,-351.47 in a bank "Farm Account" is nothing other than general estate assets. Accordingly it cannot pass under Article VI.
IX. As previously indicated the facts in this case are much like those presented by In re Will of Miller, supra.
Trial court therefore understandably deemed Miller persuasive, if not controlling, at the same time observing the injustice of its application.
For reasons heretofore stated we agree with that observation and In re Will of Miller, 128 Iowa 612, 105 N.W. 105, is accordingly overruled insofar as inconsistent with this opinion.
X. This action was proper and not unnecessarily commenced by plaintiff Kenneth W. Newbury, as executor of the Estate of Kate E. Fults, deceased, to secure construction of the subject will. Costs attendant upon this appeal are therefore taxed to said estate. See Court Rule 23.
Reversed.
STUART, MASON, BECKER and UHLENHOPP, JJ-, concur.
LeGRAND, J., MOORE, C. J., and LARSON and REES, JJ., dissent.