On January 2, 2007, Testator borrowed $100,000 from Bank A. As collateral, Testator gave Bank A a security interest in a valuable original Van Gogh painting which she owned. One month later, Testator borrowed $50,000 from Bank B. At that time, Testator gave Bank B a security interest in the same Van Gogh painting. The same day, Bank B filed its financing statement. A week later Bank A filed its financing statement.
Three months later, Testator contacted Attorney about drafting a will. Attorney drafted a will on June 15, 2007, based on Testator’s instructions. On the following day, after declaring the instrument to be her will, Testator signed it in the presence of Witness One. Witness One also signed the will at that time. Ten days later, Testator acknowledged to Witness Two that the instrument was her will and that it was her signature which appeared therein. Witness Two thereupon signed the will. Witness One was not present when Witness Two signed. Testator’s will contained the following bequests: (1) $25,000 to “the issue” of her daughter, Ann; (2) the original Van Gogh painting which was the subject of the security interests held by Bank A and Bank B to her son, Bob; (3) $100,000 to her son, Charles, whom she gave up for adoption in 1955; (4) and the residuary estate to her son, Bob. All of the beneficiaries were identified by name, except the issue of Ann.
On September 1, 2007, Testator defaulted on both her Bank A and Bank B loans. On October 1, 2007, Testator made a permanent gift of the original Van Gogh painting to Museum. Thereafter on November 10, 2007, Testator’s son Charles died. He was survived by a son, Fred. One month later on December 10, 2007 Testator died. She was survived by Ann; Ann’s adopted daughter, Jill; Bob; her estranged daughter, Doris; and Fred. Testator’s will was offered for probate on March 1, 2008. The following day Doris filed an objection to the probate of Testator’s will claiming it was not properly executed. Fred claims he is entitled to Charles’s bequest under the will. Bob claims the bequest lapsed and should be part of the residuary estate.
(1) Should Testator’s will be admitted to probate?
(2) Assuming the will is properly admitted to probate, what are
the rights, if any, of Jill, Bob, Doris and Fred?
(3) (a) Do the security interests of Bank A and Bank B survive
Testator’s gift of the original Van Gogh painting to Museum?
(b) Assuming that the security interests of both banks survive,
which bank’s security interest has priority?
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