Department of Institutions v. Bank of America National Trust & Savings Ass'n

SHENK, J.

This appeal is from an order overruling objections to and settling the first annual account of the guardian of the incompetent.

The incompetent is a disabled veteran of the World War. He was committed to the Napa State Hospital for treatment on June 30, 1927, where he is now an inmate. At the date of his commitment he had no estate or means of support. Subsequently he became entitled to and received compensation and disability allowance pursuant to the provisions of the World War Veterans Act of 1924 (43 Stats, at Large, 607). On May 25, 1931, the respondent, Bank of America National Trust and Savings Association, became the duly appointed and qualified guardian of the incompetent’s estate. At the time of the filing of its first annual account the guardian had received for the account of the incompetent veteran compensation and disability allowance in the sum of $965.70, and has continued to receive an allowance from the same source of $40 per month.

The Department of Institutions filed its claim against the estate of the incompetent for the sum of $1260, as the amount due to the department for the support and care of the incompetent at the Napa State Hospital at the rate of $20 a month from the date of his commitment to that institution. The court allowed and the guardian paid to the Department of Institutions the portion of the sum computed from the date of the appointment of the guardian. The court disallowed any portion of said claim accruing prior to the date of the appointment of the guardian. The Department of Institutions has appealed from that order.

Undoubtedly sections 2176 and 2181 of the Political Code permit a recovery from the veteran’s estate for his care, treatment and support from and after the time he becomes possessed of an estate and means wherewith to satisfy claims therefor to the extent of the estate. Those sections, however, go no further and the question whether

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the Department of Institutions may recover for past services depends on the construction to be given to federal and state statutes providing for exemptions of veterans’ compensation and allowances from the claims of creditors.

The estate of the veteran Ferarazza consists exclusively of the allowances paid to him by the United States Government pursuant to the World War Veterans Act,