Judge Kenneth R. Freeman, Case Number: 24STCP02113, Date: 2024-08-22 Tentative Ruling

Judge: Kenneth R. Freeman, Case: 24STCP02113, Date: 2024-08-22 Tentative Ruling

Case Number: 24STCP02113 Hearing Date: August 22, 2024 Dept: 14

#13

Case Background

On July 2, 2024, Petitioner filed an unopposed petition (the “Petition”) to establish a claim to escheated property. Petitioner is a private investigator who entered into a contract with Steven J. Coley Jr. wherein Coley agreed to assign Petitioner one-third of his interest in funds being held by the California State Controller for the benefit of Coley’s mother-in-law, Decedent Jeanie K. Coley. The petition is unopposed.

Instant Pleading

Petitioner petitions to establish Coley’s claim to the escheated property.

Decision

The petition is DENIED.

Legal Standard

Escheat is the procedure by which the title to real and personal property passes to the State of California. (Code Civ. Proc., section 1300.) Escheat means “the vesting in the state of title to property the whereabouts of whose owner is unknown or which a known owner has refused to accept, whether by judicial determination or by operation of law, subject to the right of claimants to appear and claim the escheated property or any portion thereof.” (Code Civ. Proc., section 1300(c).)

When a person dies without a will and without heirs at law, as defined by the state laws of intestate succession, all of the unclaimed portion of the estate of the deceased escheats to the state on the date of the decedent’s death, subject to creditor’s claims and the costs of estate administration. (Cal. Prob. Code, sections 11900 to 11904; Cal. Gov. Code, section 182; Code. Civ. Proc., section 1441.)

“Section 1355 sets out the requirements for a petition filed to claim an escheated estate, including the presentation of detailed information on the identities and whereabouts of all potential heirs of the decedent or an express statement why the petitioners are unable to set forth any particular information called for.” (Estate of Supeck (1990) 225 Cal.App.3d 360, 365-366.) “[I]f it is determined that [a] person is entitled to the money or other property or the proceeds thereof, [the] [trial] [court] must order the property . . . to be delivered to him.” (Id. at 366.) Only heirs “who file a timely section 1355 petition, whatever their degree of kinship to the decedent” may lay claim to escheated property. (Estate of Supeck (1990) 225 Cal.App.3d 360, 369.)

A party who locates heirs who may have an interest in escheated funds cannot enter into a contract with an heir to recover the funds after the report of escheated property has been filed with the State Controller but before the publication by the State Controller of the notice of unclaimed property. (Code Civ. Proc., section 1582; see also Vanacore & Associates, Inc. (2016) 246 Cal.App.4th 438.) “[A]n agreement made after publication of notice is valid if the fee or compensation agreed upon is not in excess of 10 percent of the recoverable [funds] and the agreement is in writing and signed by the owner after disclosure in the agreement of the nature and value of the [funds] and the name and address of the person or entity in possession of the property.” (Vanacore & Associates, Inc. v. Rosenfeld (2016) 246 Cal.App.4th 438, 448.)

Property permanently escheats to the state five years after the entry of judgment in an escheat proceeding, after the completion of notice by publication in an escheat action taken by the State Controller, or after the decree of distribution of the estate assets to the state pursuant to the probate code. (Code Civ. Proc., sections 1300(d), 1355, 1430(a), 1441.) Any further claims to the escheated property are barred once property permanently escheats. (Id.)

Discussion

Here, the assets of Decedent’s estate were escheated and deposited with the Contra Costa County Treasurer on July 12, 2017 in an order for final distribution of Decedent’s estate which took place at the Superior Court of Contra Costa County. (Petition, Exh. B.) Because more than five years have passed since the funds were escheated pursuant to the probate code, the funds are permanently escheated and all claims to the escheated property are barred. Therefore, the petition to establish Coley’s claim to the escheated property is DENIED.

Conclusion

The petition is DENIED.