TEEA~TORNEYGENE OFTEXAS

February 18, 1958

Hon. Robert S. Calvert OpinionNo. WW-375 Comptroller of PublicAccounts Capitol Station Re: Correct distribution of Austin, Texas the bonds held by J. E. Boyd at the time of his death on January 7, 1957, a portion of such bonds being payable to the son and daughter of J. E. Boyd, Dear Mr. Calvert: and related questions.

You have requested the opinion of this office on the above captionedmatter. You advisedus as follows:

"J. E. Boyd died testate on January 7, 1957, a resident of Hill County, Texas, seized and possessed of a community estate valued at $143,737.08. The undivided one-half (l/2)community interest of the deceased Is $71,868.54which has been reported to this department for inheritance tax purposes. Under the terms of the lastwill and testament of the deceased, a life estatewas devised to the survivingwife with remainder divided equallybetween his son and daughter. "Among the assets of this estatewere a number ofUnited States Savings Bonds valued in the amount of $69,750.00, all purchasedwith community funds payable as follows: $10,700.00 to Husband or Wife, $50.00 to the Testator, $100.00 to the Father or Son, and $59,000.00 to the Father or Daughter.
"Youhave already advised this department the correct distribution for inheritance taxpurposes as to the bonds payable to husband and wife in OpinionNo. WW-273. In view of the terms of the lastwill and testament of the deceased,we kindly ask that you advise this departmentas to the correct distribution of the bonds made payable to the son and daughter for inheritancetax purposes.Hon. Robert S. Calvert, page 2 (WW-375)

"Further, in the eventyou hold the bonds payable to the son and daughter of the deceased should be distributed to them, (whichwill have the effect of passing the full value of the bonds out of the community estate)please advisewhether one-half (l/2)of the value of the bonds or the full value shouldbe distributed to the son and daughter." With your requestyou submit a copy of the lastwill of J. E. Boyd and we are here concernedwith provisions 3 and 4 of saidwill which are as follows:

“3. I desire and direct that all necessary expenses for the personal needs and comfort of my son, John Edwin Boyd, be paid out ofmy estate by my executrixeshereinafternamed, during his life, or so long as his present disabilities continue."

“4

. After the payment of allmy just debts and after complyingwith the provisionsmade in section (3) above, I give, devise and bequeath tomy belovedwife, Rosa Boyd, all property and estate Imay be seized and possessed of at the time of my death, for her use and benefit so long as shemay live, and at her death all of my property shallvest inmy daughter,Mary Jane Boyd, In fee simple,unless at the time of the death of my wife my son, John Edwin Boyd, is still living and has fully and completelyrecovered from his present disabilities, then In such eventmy estate shallvest inmy two children, Mary Jane Boyd and John Edwin Boyd in fee simple, share and share alike."
You have advisedus that John Edwin Boyd, the son, has fully recovered,hence provision 3 of thewill quoted above became inoperativeand needs no further consideration.

With your opinion requestyou submit the affidavit filed by Rosa Boyd, the survivingwife of J. E. Boyd, deceased and his daughter*Mary Jane Boyd, who are co-executricesof the estate of J. E. Boyd, Deceased. This affidavitwas filed by them for inheritance tax appraisement in the Estate of J. E. Boyd, Deceased. All of theUnited SavingsBonds, the subject of your opinion request, are listed In the affidavitby serial number, the date of issue, thematurityvalue, and the value at the time of the death of J. E. Boyd. This affidavit contains the following language:Hon. Robert S. Calvert, page 3 (W-375)

"All of the above bonds are communityproperty and the decedent's Interest Is one-half of the values shown above." The bonds being communityproperty, J. E. Boyd's onehalf community interest thereinpassed to his son and daughter, share and share alike,under the terms of his will, subject to the life estatepassing to Rosa Boyd, the survivingwife of J. E. Boyd, under the terms of thewill of J. E. Boyd, and you should assess the Inheritance tax accordingly.

SUMMARY The United States SavingsBonds, the subject of your opinion request are communityproperty of J. E. Boyd, deceased, and his surviving wife, Rosa Boyd, and J. E. Boyd's one-half interest thereinpassed under the terms of his will to his son and daughter, share and share alike, subject to the life estate of his survivingwife, Rosa Boyd.

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APPROVED:~ OPINION COMMITTEE George P. Blackburn, Chairman Morgan Nesbitt John H. Mlnton, Jr. Wayland C. Rivers, Jr. Yours very truly
WILL WILSON AttorneyGeneral of Texas

REVIEWEDFOR THE ATIORNEYGENERAL BY W. V. GEPPERT