separate vs joint property

[jwilll]

Texas law: A couple marries - his assets $1 million, her assets $10,000. A pre-nup agreement states that these assets remain separate but any proceeds from these assets become joint property.

20 years later she dies. His assets from investing the 1 million are now 5 million. Her will leaves everything to her son.

Change in net worth is 4 million. (1) Is this clearly joint property? and (2) Shouldn't 50% of this go to her son?

 

[ALawyer]

The son is probably NOT an irrevocable beneficiary of the pre-nup and not well situated to make a claim, but with that much money at state he really ought to have a lawyer!

I am not clear on the purpose and intent and wording of the agreement -- a lot turns on EXACTLY what it says.

If "any proceeds from these assets become joint property" then the first issue is what is meant by "proceeds"? Interest and dividends? Cash from sales? That's probably more like it, and would exclude mere appreciation of the same assets -- say the ranch was worth $500,000 and now it is worth $3.5 million -- that's nothing his wife contributed to. Ditto if it was IBM shares.

The second issue is what is meant by "joint property"? If that means it becomes joint property with right of survivorship, then when she dies it all become his, and if it he had died first it would have become hers.