State v. Wilkerson

187 Wash. 168
CourtWashington Supreme Court
DecidedAugust 10, 1936
DocketNo. 25957
StatusPublished

This text of 187 Wash. 168 (State v. Wilkerson) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Wilkerson, 187 Wash. 168 (Wash. 1936).

Opinion

Blake, J.

Philip McGovern died in June, 1924, at Port Townsend. January 28, 1926, C. J. Flint filed a petition for letters of administration on McGovern’s estate, alleging that McGovern was a resident of Port Townsend and left estate in Jefferson county subject to administration. After due notice, on February 10, 1926, an order was entered appointing Flint administrator of the estate. Due notice to creditors was given, and time for filing claims expired in August, 1926. An inventory was filed and appraisement had, showing the total value of the estate to be something more than eleven thousand dollars, consisting principally of bank deposits.

After the expiration of eighteen months, the administrator filed his final account and petition, showing that the “administrator made due search and inquiry to ascertain if said deceased left any known heirs at law, but none has been found or located. ’ ’ The administrator prayed for approval of his account and escheat of the residue of the estate to the state of Washington.

After due notice and hearing, the court, on October 14, 1927, entered a decree settling the account, and ordered “that the residue of the estate be escheated to the state of Washington, as provided by law.” The decree having been complied with, the court, on February 15, 1928, entered an order discharging the administrator and exonerating his bond.

On November 28, 1933, the inheritance tax and escheat division of the state of Washington filed its petition in the same probate proceedings, showing that, at the time of McGovern’s death, he had a savings account in The Bank of California, N. A., at Seattle. At the time the petition was filed, the account— principal and interest — amounted to more than ten thousand dollars. The prayer of the petition was that the estate be reopened and that the account be imme[170]*170diately escheated to" the state of "Washington. On the same day, an order was entered in accordance with the prayer of the petition. In compliance with this order, the bank surrendered the account to the inheritance tax and escheat division of the state of Washington.

Again, on April 10, 1934, the inheritance tax and es-cheat division filed a petition in the probate proceedings, showing that, at the time of his death, McGovern had a savings account in the Olympia National Bank, at Olympia. At the time the petition was filed, the account — principal and interest — amounted to more than five thousand dollars. On the same day, the court entered an order escheating the account to the state of Washington.

On April 6, 1935, a petition was filed in the probate proceeding on behalf of Margaret Hughes and Mary Kennedy, who claim to be nieces of McGovern, praying that the order of escheat of April 10, 1934, be vacated. On September 27,1935, a motion was presented in the probate proceedings, on behalf of Margaret Hughes and Mary Kennedy, to vacate the order of es-cheat of November 28, 1933.

On April 6, 1935, an original petition for letters of administration on the estate of Philip McGovern was filed in the superior court of Jefferson county on behalf of Margaret Hughes and Mary Kennedy. The estate upon which administration was sought consisted solely of the above described savings accounts with The Bank of California, N. A., and the Olympia National Bank.

On October 18, 1935, the court entered in the first probate proceedings orders vacating the orders of es-cheat entered November 28, 1933, and April 10, 1934. On the same day, an order was entered appointing an administrator on the petition filed on behalf of Margaret Hughes and Mary Kennedy. Also, on October 18,1935, an order was entered denying a motion, made [171]*171on behalf of the state, to dismiss the application of Margaret Hughes and Mary Kennedy. From these four orders entered October 18,1935, the state appeals.

Eem. Eev. Stat., §1357 [P. O. §9878], relating to escheated estates, provides:

“Such estates shall be administered and settled in the same manner as other estates. If at the expiration of eighteen months after the issuance of letters of administration no heirs shall have appeared and established their claim thereto, the court having jurisdiction of such estate shall render a decree escheating all the property and effects of such decedent to the State of Washington.”

Construing this section, we have held that the state is not entitled to a decree of escheat until it is shown that, after diligent search and inquiry, no heirs can be found. In re Smith’s Estate, 179 Wash. 287, 37 P. (2d) 588. In that case, it was also held that, before entry of a decree of escheat, the court might extend the time for claimants to establish heirship, notwithstanding more than eighteen months had elapsed since the issuance of letters of administration.

We have also held that dormant bank accounts can be escheated only through administration proceedings. In re Railsback’s Estate, 184 Wash. 42, 50 P. (2d) 934.

Furthermore, we have held that an administrator will not be permitted to plead a decree of distribution as res adjudicata as to property which he intentionally failed to bring into the administration proceedings.

Now, the question is, do these decisions compel the vacation of the orders of escheat of November 18,1933, and April 10, 1934, and necessitate administration on the savings accounts found in The Bank of California, N. A., and in the Olympia National Bank? We think not.

In re Railsback’s Estate, supra, the court said:

[172]*172“We have held that the rights of creditors to the assets of a deceased person is the principal reason for requiring official administration; and courts, therefore, sanction the disposition of the property of a decedent without the appointment of an administrator where it is certain that no debts are owing. ’ ’

In Hill v. Young, 7 Wash. 33, 34 Pac. 144, the court held that, the rights of all possible creditors being barred by lapse of time, an heir could establish his interest in property by a suit in equity. It was specifically held that there was no necessity for administration. In Murphy v. Murphy, 42 Wash. 142, 84 Pac. 646, it was held that, after a lapse of ten years, there was no necessity for administration, and that, upon the application of heirs, the court properly revoked letters, theretofore issued, cum testamento annexo.

Prom these authorities, we deduce that the mere discovery of the savings accounts here in dispute did not necessitate the opening of the old administration proceedings, nor the institution of the new. It is clear that heirs, if any, could have established their rights in the accounts by a suit in equity. Now, if the heirs could so establish their rights, why not the state ? The general rule is that,

“In the absence of statute to the contrary the courts of law, . . . have jurisdiction of an inquisition, or other proceeding to establish or perfect an escheat. ’ ’ 10 E. C. L. 611.

As we have seen, § 1357 provides that ‘ such estates shall he administered and settled in the same manner as other estates.” This estate was so administered. It was so settled by the decree of October 14, 1927, approving the administrator’s final account and declaring escheat of the estate. While it was proper to reopen the estate and bring in the subsequently, dis[173]

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Related

In Re Smith's Estate
37 P.2d 588 (Washington Supreme Court, 1934)
In Re Railsback's Estate
50 P.2d 934 (Washington Supreme Court, 1935)
Murphy v. Murphy
84 P. 646 (Washington Supreme Court, 1906)
Palmquist v. Sagstad
106 P. 1116 (Washington Supreme Court, 1910)
Hill v. Young
34 P. 144 (Washington Supreme Court, 1893)
Cunha v. Hughes
54 P. 535 (California Supreme Court, 1898)

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Bluebook (online)
187 Wash. 168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-wilkerson-wash-1936.