Wallace v. First National Bank

246 P.2d 894, 125 Colo. 584, 1952 Colo. LEXIS 349
CourtSupreme Court of Colorado
DecidedJune 16, 1952
Docket16687
StatusPublished
Cited by15 cases

This text of 246 P.2d 894 (Wallace v. First National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wallace v. First National Bank, 246 P.2d 894, 125 Colo. 584, 1952 Colo. LEXIS 349 (Colo. 1952).

Opinions

Mr. Chief Justice Jackson

delivered the opinion of the court.

The question here involved is whether the wife’s [586]*586entry of a homestead right on her husband’s home property, followed by the husband’s death, can thereafter be asserted against another heir at law of her husband where the widow has been allowed her $2,000 widow’s allowance under the law of descent and distribution, and the estate otherwise is solvent.

The case arose when the administrator of the husband’s estate filed its petition for the sale of the home property. It was disclosed by the petition that the personal property was of the value of $2,053.62, and the claims against the estate amounted to $2,800. The purpose of the sale was to raise funds for the payment of the widow’s allowance and expenses of administration. About a month later the widow, plaintiff in error here, filed her petition showing that a homestead entry had been filed on the home property approximately a year prior to the death of decedent, and that she thereafter claimed, and still claims, a homestead interest in the property. She further showed that the county court, in accordance with the administrator’s petition, authorized a sale of a portion of the home property, but that no report of a sale or order confirming sale had been made. She prayed for an order directing the administrator to set off and pay to her the sum of $2,000 out of the first proceeds of the sale in satisfaction of the homestead interest, and upon receipt of that sum offered to release her homestead rights. The county court thereupon ordered the administrator to pay to the widow from the proceeds of the sale “the sum of $2,000 out of the first proceeds of said sale in satisfaction of said homestead interest.” In the next paragraph, however, it ordered that out of the remaining proceeds of the sale the administrator should pay to the other heir or heirs at law of deceased the sum of $2,000, and that the balance of the proceeds of the sale should be divided one-half to the widow and the other half to the remaining heir or heirs at law of deceased.

The widow then appealed to the district court where, [587]*587on a trial de novo, the parties entered into a stipulation as to the facts, from which it appears that, in addition to those already stated, the widow and an adult daughter of deceased by a prior marriage, are the sole and only heirs at law of deceased; that the real estate had been occupied as the home of deceased and plaintiff in error for a substantial period prior to deceased’s death, and that since then'it had been occupied continuously by plaintiff in error as her home; that her homestead entry was in full accordance and in compliance with section 23, chapter 93, volume 3, ’35 C.S.A.; that she had filed her claim for $2,000 widow’s allowance against the estate; that this had been allowed as a claim of the fourth class, but had not yet been paid; that the administrator had entered into a contract for the sale of the real estate and all furniture belonging to deceased to the adult daughter of deceased for the sum of $8,700, but that the sale had not been consummated due to the present controversy as to the distribution of the proceeds; that the specific questions presented for determination are: (a) Whether the widow is entitled to the payment of Two Thousand Dollars or any other amount out of the proceeds of the sale of the real estate on account of, or because of, or in lieu of her homestead rights in the property, (b) Whether the widow is entitled to both the homestead rights and a widow’s allowance, (c) Whether the widow is entitled to the occupancy of the property rent free until it is sold on account of her homestead interest.

The district court adopted the stipulation of facts as its findings, and further found that the county court had jurisdiction to enter the decree for the sale of real estate; that the estate was solvent; that the net assets of the estate after payment of all claims, including those of the fifth class, amounted to approximately $5,500; that the widow was entitled to the sum of $2,750 as her distributive share, “which sum exceeds the amount provided by law as a homestead exemption and that no part [588]*588of said sum is necessary or required to be taken for the payment of claims of the fifth class which represent the debts of the deceased.” The court also found, as a matter of law, that the entire net assets of the estate should be distributed under the Colorado statutes of descent and distribution; that for the foregoing reasons the widow was not entitled to be paid out of the assets of the estate the sum of $2,000 as a homestead exemption; and that an allowance of the claim would in effect not be against creditors but against the heirs at law.

The court further found that the widow was entitled to possession of the homestead, and was not chargeable with rent until tender was made to her of the sum of $2,000 which in this case is chargeable against her distributive share of the estate. The court thereupon ordered that the widow’s claim for the statutory homestead be denied; that the entire net assets of the estate in the approximate sum of $5,500 be divided equally, one-half to the widow and one-half to the other heir or heirs at law. It also was directed that, because the results of the judgments in the district court and the county court were the same, each party pay their own costs.

The four specifications of points are argued upon the following four headings: 1. The Colorado homestead right is in the nature of a right or interest in property and is not a mere exemption. 2. Since the homestead is an interest in property, the widow cannot be deprived of it without just compensation; otherwise the constitutional due process clause is violated. 3. Even if the homestead interest is construed as merely an exemption, the widow still is entitled to it under the facts presented because an administrator’s sale in every sense amounts to an execution against the homestead property to pay the debts, claims and expenses of administration. 4. In an administrator’s sale, under the statute, the court must give due consideration to the rights of all. This can only [589]*589be accomplished by an allowance to the widow in lieu of her homestead interest.

The pertinent provisions of our homestead laws, ’35 C.S.A., chapter 93, are as follows:

“§23. * * * Every householder in the State of Colorado, being the head of a family, shall be entitled to a homestead not exceeding in value the sum of two thousand dollars, exempt from execution and attachment, arising from any debt, contract or civil obligation, entered into or incurred after the first day of February, in the year of our Lord one thousand eight hundred and sixty-eight. [G. S., §1631; G. L., §1343; R. S., p. 385, §57; R. S. ’08, §2950; C. L., §5924.]’’

Section 24 provides for a marginal entry by either the husband or wife. For our purposes it is not necessary to set forth this provision in full, except to note the mutuality in the following: “§24. * * * provided, that in case the husband is the owner of said homestead, the wife may cause such entry to be made and recorded, and the signautre of the said entry by the wife shall have the same effect as if entered by the husband, the owner of the property. And in case the wife is the owner of the homestead, and shall fail to make such homestead entry the husband may cause the homestead entry to be made, and the signature thereof by him shall have the same effect as if the entry had been made by the wife, the owner of the property; * * * [L. ’11, p. 452, §1; amending R.

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Wallace v. First National Bank
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Cite This Page — Counsel Stack

Bluebook (online)
246 P.2d 894, 125 Colo. 584, 1952 Colo. LEXIS 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-v-first-national-bank-colo-1952.