First National Bank v. Condos

266 P.2d 404, 70 Nev. 271, 1954 Nev. LEXIS 49
CourtNevada Supreme Court
DecidedFebruary 1, 1954
DocketNo. 3754; No. 3755; Nos. 3754-3755
StatusPublished
Cited by1 cases

This text of 266 P.2d 404 (First National Bank v. Condos) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank v. Condos, 266 P.2d 404, 70 Nev. 271, 1954 Nev. LEXIS 49 (Neb. 1954).

Opinion

[273]*273OPINION

By the Court,

Merrill, J.:

In these two cases separate cross appeals have been taken by the parties from an order of the court below setting apart to Ellen Condos certain property as her share of a community estate. For purposes of expedition the two appeals were consolidated for argument before this court and this opinion will dispose of both matters.

Case Number 3754

The question here presented may be stated generally as follows: Where the deceased husband has by will disposed of his share of a community estate and such share is therefore subject to administration, is the widow’s share likewise subject to administration?

Paul Condos died August 28, 1952 leaving a widow surviving him, Ellen Condos, the respondent herein. At the time of his death a community estate had been accumulated of a value of $284,000. The decedent left a will disposing of the entire community in trust to provide support for his widow throughout her lifetime and, upon her death, to certain designated charities. By the terms of the will the widow was given an election to consent to [274]*274such disposition of the community estate. Should she fail to consent and, instead, demand the share of the community to which she was entitled by law, the decedent’s share then went outright to the designated charities. Appellant First National Bank of Nevada was named executor.

The widow elected not to consent to disposition of the entire community and petitioned the court below for an order establishing and decreeing that one-half of the community estate vested in her without administration. An order was made by the court to this effect which also provided, “That the commissions of the Executor can only be calculated and fixed on the personal estate of said Decedent and not on the community property interest of the surviving wife; that the attorney for the estate can only be compensated for the service he renders the estate, and both statutory commissions and attorneys’ fees must come from the estate of said Decedent.” Further the order directed the executor to deliver to the widow one-half of the estate property “after deducting therefrom a sum sufficient to pay one-half of the debts of said Decedent * *

From this order the executor has appealed. It contends that the entire community including the widow’s share is subject to administration and to expenses of administration and that the whole theréof should be taken into consideration in fixing compensation for such administration.

The controlling statute is sec. 3395.02, N.C.L.1929, Supp. 1931-1941, which provides in part as follows: “Upon the death of the husband one-half of the community property shall vest in the surviving wife, and the other half is subject to the testamentary disposition of the husband, and in the absence of such disposition goes to his surviving children equally, and in the absence of both such disposition and surviving children, the entire community property shall vest without administration in the surviving wife, except as hereinafter provided, subject, however, to all debts contracted by the [275]*275husband during his life that were not barred by the statute of limitation at the time of his death; * * *. In case of the dissolution of the community by the death of the husband, the entire community property is equally subject to his debts, the family allowance, and charges and expense of administration; provided, however, that if in the absence of said testamentary disposition the surviving wife and children, and in the absence of such children, the wife shall pay or cause to be paid all indebtedness legally due from said estate, or secure the payment of the same to the satisfaction of the creditors of said estate, then and in such case the said community property shall not be subject to administration.”

The question presented involves several problems which may be attacked consecutively. Since it appears that the entire estate was community property, we are not faced with the question of the liability of the community for the expenses of administration of the husband’s separate estate. Many additional questions with reference to the administration of community estates are suggested by the matters here considered and the temptation to explore and attempt in anticipation to settle them is indeed great. We do, however, confine ourselves strictly to those questions which we feel are necessary to the present appeal and reflect directly upon those actions of the lower court assigned as error.

First: Regardless of whether the widow’s share is itself subject to administration, is it subject to any charges other than those specified by the court below, i.e., debts of the decedent?

In this respect the quoted statute is explicit to a point where, in our view, there is no room for interpretation. It provides: “In case of the dissolution of the community by the death of the husband, the entire community property is equally subject to his debts, the family allowance, and charges and expense of administration.” The lower court was then in error in releasing the widow’s community estate from its proportionate share of the [276]*276expenses' of administration. To determine what those expenses may properly include we must, however, inquire further.

Second: Is the widow’s share itself subject to administration?

It should be noted that the quoted section in one instance expressly makes use of the phrase, “without administration.” In one instance it expressly provides that “the said community property shall not be subject to administration.” The preceding section respecting the rights of a husband upon death of the wife provides in part, “Upon the death of the wife the entire community property shall vest without administration in the surviving husband, * * In contrast, the provision of sec. 3395.02 with which we are here concerned reads, “Upon death of the husband, one-half of the community property shall vest in the surviving wife.” Conscious as the legislature apparently was of the significance of the phrase “without administration” and of the desirability of making express use of it in certain instances, it was omitted in this instance. Was that omission significant? We feel that it was. The legislature appears to have recognized that save in those cases expressly mentioned, court supervision and control are essential to orderly procedure and to afford full protection to all concerned.

Upon this question, we conclude that the entire community under the circumstances of this case is, by statute, made subject to administration.

Third: To what manner of administration is the widow’s share then made subject?

Certainly it is not a decedent’s estate. Respondent points out that under the established law of this state the community interest of the wife is not a mere expectancy but vests upon acquisition of the community property. She then contends that upon death of the husband the share of the wife is property already vested in a living person, as much so as the interest of a tenant in [277]*277common or joint tenant and therefore is no more subject to administration than such interests’ would be.

We recognize that in this state a wife’s interest in community property vests upon the acquisition of such property by the community. In Re Williams’ Estate, 40 Nev. 241, 161 P. 741, L.R.A. 1917C, 602; Petition of Fuller, 68 Nev.

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Related

In Re Condos's Estate
266 P.2d 404 (Nevada Supreme Court, 1954)

Cite This Page — Counsel Stack

Bluebook (online)
266 P.2d 404, 70 Nev. 271, 1954 Nev. LEXIS 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-condos-nev-1954.