Babcock v. Wood

THE COURT. The day after the court had made an order of partial distribution, which became the subject of an appeal decided by us October 31, 1934 (Estate of Nuttle, 1 Cal. App. (2d) 678 [37 Pac. (2d) 200]), respondent therein, Juana M. Wood, filed a petition in the Probate Court of Los Angeles County designated “Petition for Order to Determine Heirship and Interest in Estate” (under secs. 1080, 1081 and 1082, Probate Code), which alleged, in addition to certain jurisdictional facts, that petitioner was a “devisee and legatee of said deceased and is [417]a party interested” in the/his estate, and as such claimed $50,000 par value of United States government bonds and United States of America treasurer notes and other property described; that there are various persons who claim an interest in $22,000 par value of such government bonds and treasurer notes “specifically,left to your petitioner”; that it is the contention of such persons that said bonds and treasurer notes are assets of the J. T. Investment Company, a Kansas corporation, “all of the stock of which corporation was owned by the deceased herein at the time of his death”, and that the stock of said corporation is an asset of said estate and petitioner is not entitled to receive said bonds and notes as a part of the specific bequest made her in decedent’s will—praying that the “respective claims of heirship, ownership or interest iy said estate and in said bonds and notes” be set forth and that the court “ascertain and declare the rights of all persons to said estate and determine the rights of all persons to said estate and determine who is entitled to distribution” of said $22,000 bonds and notes. Notice of the hearing of said petition was served on the attorneys for the executor, A. E. Nuttle, a creditor, and appellant Leota Babcock, and a notice was posted by the clerk advising of the filing of said petition “praying for an order of court ascertaining and declaring the rights of all persons to said estate, and determining who is entitled to distribution of the $22,000.00 par value of U. 8. Government bonds and U. 8. Treasurer notes” (italics ours), as set forth in the petition, and fixing the date upon which cause should be shown why the prayer of said petition should not be granted.

In its decree after such hearing the court found among other facts that the executor held all the stock of the J. T. Investment Company, a Kansas corporation, and that said corporation was organized during the lifetime of decedent “for the purpose of facilitating the handling of his business, and was his personal corporation and alter ego”; that “all of the capital stock of said corporation was owned by the deceased herein at the time of his death”; that said executor “now has in his possession the following U. S. Government bonds”, describing Fourth Liberty Loan bonds of the par value of $29,500 and one U. S. A. treasurer note of the par value of $10,000, none of which was included in the