In re the Estate of Vernon

659 P.2d 1052, 1983 Utah LEXIS 976
CourtUtah Supreme Court
DecidedFebruary 22, 1983
DocketNo. 18424
StatusPublished
Cited by3 cases

This text of 659 P.2d 1052 (In re the Estate of Vernon) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Estate of Vernon, 659 P.2d 1052, 1983 Utah LEXIS 976 (Utah 1983).

Opinion

PER CURIAM:

The Treasurer of the State of Utah appeals from an order of the district court determining that the estate of Harold T. Katz, and that of his sister, Vera Katz Vernon, had not escheated to the State for the benefit of the school fund. The court ordered Harold’s estate to be distributed to the estate of Vera Katz Vernon, and the latter to be distributed in equal shares to Audrey Hampton Tandy and Sybil Beck Barrett, claimants and respondents here. We affirm.

Harold T. Katz died intestate on October 23, 1965. He was not survived by spouse, issue or parent, but was survived by his sister, Vera Katz Vernon. Vera Katz Vernon died intestate four days later, on October 27, 1965. Vera was not survived by spouse, issue, parent, brother or sister, or issue of brother or sister.

The statute in effect in 1965, under which the parties to this action claim, provided:1

74-4-5. When any person having title to any estate, not otherwise limited by marriage contract, dies without disposing of the estate by will, it is succeeded to and must be distributed, unless otherwise expressly provided in this title or in the Probate Code, subject to the payment of his debts, in the following manner:
* * * * ⅜ *
(6) If the decedent leaves neither issue, husband, wife, father, mother, brother nor sister, nor children or grandchildren of any deceased brother or sister, the estate must go to the next kin in equal degree, excepting that when there are two or more collateral kindred in equal degree, but claiming through different ancestors, those who claim through the nearest ancestor must be preferred to those claiming through an ancestor more remote.
⅜ * Ht sfc ⅝ sfc
(9) If the decedent leaves no husband, wife, or kindred, and there are no heirs to take the estate or any portion thereof, the same shall escheat to the state for the benefit of the school fund.

Walter R. Ellett was appointed administrator of each estate, on November 30,1965, and January 12, 1966, respectively. The administrator found two or three bank accounts in Harold’s name, and two parcels of real property. One of said parcels had been sold on a long-term real estate contract which was not fully paid until 1979; the other was held in the names of Harold Katz and Vera Katz Vernon. This one-half interest in real property was apparently the only asset of the estate of Vera Katz Vernon other' than her interest as sole heir of her brother’s estate. The administrator held, at the date of the trial in this matter, approximately $32,000 in cash.

Notice to creditors was duly published in each estate in 1966, but no notice to heirs of the estate was then published. Shortly after April 28, 1967, Hope Fairbanks Nessen contacted the administrator and advised him that there were heirs of the estates. Mrs. Nessen provided the administrator with genealogical records and addresses of some of the possible heirs. The identified persons were all children of decedents’ first cousins (cousins once removed), traced through their father. A letter was sent over Mrs. Nessen’s signature to all of the identified persons asking them to verify their relationship to the decedents. The administrator received no replies. Only one letter was returned undelivered.

[1054]*1054On June 17, 1969, the administrator sent another letter to the list of possible heirs, entitling the letter “Determination of Heirs,” and requesting that said possible heirs contact him or the court. In this letter, the administrator warned the relatives that if no heirs were established, the estates might escheat to the State of Utah. The administrator also advised these relatives that the estates would not be distributed for another eight years, at the time the real estate contract was paid in full. No reply was received by the administrator.

The real estate contract was fully paid in 1979. On August 8,1979, the administrator again sent letters to all of the relatives on his list stating that he was ready to close the estate, and asking them to contact him. He received no reply.

On May 9,1980, the Utah State Attorney General sent notices to the administrator that the State would claim the estates under the escheat statutes. On May 29, 1980, the administrator filed a “Petition to Determine Interests in Estate,” praying that an order be entered directing service of notice by mail and by publication to all heirs to appear and prove heirship. This petition was granted and such notice was duly published and sent by mail. Three persons appeared and filed claims: Sybil Beck Barrett and Audrey Hampton Tandy, both first cousins once removed, whose names were on the administrator’s list, and Hope Fairbanks Nessen, a first cousin twice removed, whose mother’s name was on the list, and who had provided the administrator with the genealogical chart in 1967. Each of the three claimants claimed through the same ancestor.

The Treasurer of the State of Utah filed his petition for complete settlement of the estates on June 6, 1980, claiming that the estates had escheated to the State under either § 75-12-29 or § 75-12-27, which said sections were in effect at the dates of these deaths, but have since been repealed.

At the trial on the Treasurer’s petition, Audrey Hampton Tandy testified concerning her relationship to the decedents, and testified that the notice she received from the court was the only notice she received concerning these matters. Sybil Beck Barrett did not testify, but her relationship to the decedents was established by Hope Fairbanks Nessen.

The court found that the administrator had notice that living heirs existed shortly after April 28, 1967, and that once heirs were established, the State had no further interest in the estates. The court further found that the notice to creditors was not notice to heirs; that no notice which complied with due process was given to heirs until May of 1980 when the court issued notice to appear and prove heirship; and that that notice was the only notice actually received by the claimants, Sybil Beck Barrett and Audrey Hampton Tandy. The court found that these two claimants were one degree closer in relationship to decedents than was Hope Fairbanks Nessen. The court ordered the administrator to submit his accounting, and to distribute the residue of the estate, after payment of expenses, in equal shares to Sybil Beck Barrett and Audrey Hampton Tandy.

On appeal, the Treasurer contends that the State is entitled to distribution of the combined estates under § 75-12-27, which provided in 1965:

75-12-27. When any person appears and claims the money paid into the treasury, the court making the distribution must inquire into such claim, and, being first satisfied of his right thereto, must grant him a certificate to that effect under its seal; and upon presentation of the certificate to him the clerk of the court must draw his requisition on the state auditor for the amount; and upon presentation to him of such requisition the state auditor shall draw his warrant on the state treasurer in the sum called for in said requisition. If no claimant appears within five years after the decedent’s death to claim succession, the property or the proceeds thereof shall escheat to the state for the benefit of the state school fund.

As no claimant appeared within five years of these deaths, the Treasurer argues [1055]

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Bluebook (online)
659 P.2d 1052, 1983 Utah LEXIS 976, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-vernon-utah-1983.