Estate of Cruz

Opinion

BLEASE, J.

The superior court found appellant Lani Castro Cruz (Cruz) was the sole known heir for and entitled to possession of the whole of an estate which had escheated to the state. In this appeal Cruz challenges the portion of the court’s order prohibiting immediate distribution of the estate. She asserts she is entitled to immediate distribution and the state agrees. We also find delaying the distribution was improper.

A public administrator of the estate at issue had asked that the court distribute it to the state when no heirs claimed it. (Prob. Code, §§ 1144, 1027.)

1

Cruz filed a petition with the court seeking distribution of the estate

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to herself on the basis the decedent was her uncle and that she was the sole known heir. (Code Civ. Proc., § 1355.)

2

The superior court found Cruz was the sole known heir and that she was entitled to the whole estate but ordered that it not be distributed to her until five years had elapsed from the date upon which the estate had first escheated to the state.

In delaying distribution to Cruz, the court apparently relied on Code of Civil Procedure section 1355 and former Probate Code section 1027. Probate Code section 1027 formerly required that the state hold for five years any estate which escheated to it before initiating proceedings to formally take title to the property. Code of Civil Procedure section 1355 allows a potential heir five years from the state’s initial reception of an escheated estate to file a claim to recover the estate. In this case, the date on which the state could have initiated formal proceedings is the date on which the estate will be distributed to Cruz. The court was apparently concerned that other, as yet unknown, heirs might subsequently present claims against the estate.

Delaying distribution of the estate is not required because unknown heirs do not have a vested interest in an escheated estate during the state’s five-year waiting period. The underlying principle is that escheats are disfavored and are to be avoided if possible.