A Kentucky man died without a will with about $2.33 million in transfer-on-death investment accounts left to his children; an appeals court has upheld his widow’s right to half the accounts plus part of earlier gifts

A Kentucky woman whose husband died without leaving a will has won a legal dispute over approximately $2.33 million held in investment accounts that named his children as beneficiaries. The Kentucky Court of Appeals has upheld an earlier ruling that Nancy Bobo Perrine is entitled to half the value of the accounts, along with a share of $126,000 in gifts made to her husband's children and grandchildren shortly before his death.The ruling, issued on Friday concerns the estate of William E. Perrine, known as Bill, who died on February 6, 2024. His four adult children challenged a Fayette Circuit Court decision that recognised Nancy's legal right to a portion of his personal property under Kentucky's dower law.According to court records, the dispute arose because Bill had named his children, rather than his wife, as beneficiaries of two investment accounts. These were transfer-on-death (TOD) accounts, which allow assets to pass directly to named beneficiaries when the account holder dies. However, the appeals court found that the arrangement did not remove Nancy's statutory claim to the money.The judges also agreed with the lower court that the children had failed to overcome a legal presumption that the arrangements were intended to deprive Nancy of her rightful share.Couple married without financial agreementBill and Nancy first met in Atlanta in 1952, when Bill was studying at the Georgia Institute of Technology. They dated briefly before Bill returned to Kentucky. The two then went their separate ways for about 50 years.Bill married, had four children and later divorced. Nancy married John Bobo in 1955 and had three children. Her husband died in 2002.Bill and Nancy reconnected in 2007 while living in different cities. They eventually married in October 2015, after which Nancy moved to Lexington. The court noted that they had neither discussed their personal finances nor signed a prenuptial or postnuptial agreement.Bill suffered a serious fall in December 2022, that required months of hospital treatment. He died in February 2024 without a will and Nancy was appointed to administer his estate.The $2.33 million investment accountsAt the time of his death, Bill owned no real estate, and his tangible personal property was valued at $18,826. However, he held an IRA and another investment account managed through Schwab, together worth $2,331,762.92.Both accounts named his children as transfer-on-death beneficiaries. The court also examined an earlier investment account held with Baird Private Wealth Management with a balance of $409,395 in May 2022.In 2023, Bill's son, under a power of attorney, designated the children as beneficiaries of the Baird account. He later closed it and moved the funds into the investment account which became part of the Schwab holdings.Bill also held two fully paid whole-life insurance policies worth a combined $2 million, with his children as beneficiaries. Nancy did not claim any portion of those proceeds because of the applicable legal treatment of life insurance.Another disputed transaction occurred on January 30, 2024, just one week before Bill died. His son arranged seven payments of $18,000 each from the Schwab investment account to Bill's children and grandchildren worth $126,000..Matter reaches courtNancy filed a civil case in Fayette Circuit Court in April 2024, seeking recognition of her dower rights and raising claims involving fraud on dower and conversion.Under the version of Kentucky law applicable when Bill died, a surviving spouse of someone who died without a will was entitled to half of the surplus personal property. In October 2025, the circuit court ruled in Nancy's favour.Bill's children appealed, arguing that the accounts passed outside probate and therefore should not be included in the property subject to Nancy's claim.They also argued that Bill had originally selected his children as beneficiaries before reconnecting with Nancy, meaning the arrangements were not intended to deny her an inheritance.The appeals court disagreed with both arguments. It explained that although transfer-on-death accounts pass directly to beneficiaries and the account holder retains ownership and control during their lifetime.It also said that Bill could withdraw money, change beneficiaries or close the accounts without obtaining his children's permission. The court therefore said that the assets remained his property until his death and were subject to Nancy's statutory interest.You use AI every day. Now get your AI Quotient. Take the AIQ test.