Singleton v. Donalson, 117 S.W.3d 516 (Tex. App.—Beaumont 2003, pet. denied).
Testatrix devised a life estate in real property to her husband (Life
Tenant) with the balance passing to named relatives (Remainder
Beneficiaries) upon his death. Remainder Beneficiaries asserted that
Life Tenant breached his duties by consuming and using the royalties and
bonuses received from oil and gas produced on the real property. The
trial court granted summary judgment in favor of Life Tenant and the
appellate court affirmed.
The court recognized that oil and gas royalties and bonuses are usually
considered corpus. However, Testatrix’s will clearly showed that she
intended to grant Life Tenant the right to consume and dispose of the
royalties and bonuses. The court focused on the language Testatrix used
to grant the life estate. She expressly included “fee, surface,
minerals, royalties,” indicated that Life Tenant was “to enjoy the use
and benefits, including the income” of the property, and permitted Life
Tenant to use these benefits “as he sees fit.”
Moral: A person devising a life estate should clearly indicate the
rights of the life tenant and the remainder beneficiaries.