A.rrOWNEY GEZNERAI- ApxiE 23, 196%

Honorable Jesse James State Treasurer Capitol Building Austin, Texas 78711

Dear Mr. James: Opinion No. M-222
Re: Whether the Statemay make payment of a claim presented by theAdministrator of the decedent's estate for funds previously delivered to the State under theprovisions ofArticle 7.11, Texas Business CorporationAct.
You have requested the opinion of this office as towhether the State of Texas canpay a claim from the Estate of Kramer W. Peterson, deceased, Richard D. Jarratt, Administrator, for fundsheld as liquidating dividends of the Texas Pacific Coal and Oil Company, paid to theTreasury Department under Article 7.11, Texas Business Corporation Act. Your letter reads, inpart, as follows:

"Weare in receipt of a claim from the Estate of Kramer W. Peterson, Deceased, Richard D. Jarratt, Administrator, in the amount of $6,907.00.
"Mr.Peterson was a resident of Florida and diedbefore the claim could be completed. According to the informationwe have, Mr. Peterson had a surviving brother George Peterson.
"We are enclosing the claim and all the correspondence thatwe have had in connection with this claim and request an official written opinion as towhether the State Treasurer canpay this claim." The file accompanying your request revealsHon. Jesse James, page 2, (M-222)

that Kramer W. Peterson was in theprocess ofperfecting the abovementioned &aim at the time ofhis death. Richard D. Jarratt qualified asAdministrator ofhis estate andproceeded to seek the recovery of the above mentioned funds onbehalf of the estate. The file also contains, among others, the following documents:

(1) Certificate for 100 shares of Texas Pacific Coal and Oil Company stock issued to Kramer W. Peterson; (2) A certified copy of letters testamentary issued to Richard D. Jarratt by the County Court of PineLlas County, Florida; (3) A certified copy of the Last Will and Testament ofKramer W. Peterson; (4) An order of the County Court of Travis County, Texas, admitting thewill of Kramer W. Peterson toprobate as a foreign will andgranting letters of administration toRichard D. Jarratt; (5) A certificate of theCounty Clerk of Travis County, Texas, that Richard D. Jarratt qualified asAdministrator of the Estate ofKramer W. Peterson; (6) The affidavit of George Peterson that he is thebrother of Kramer W. Peterson; (7) The affidavit of Bonnie Westwood that George Peterson is thebrother of Kramer W. Peterson. The file further reflects thatMr. Jarratt has executed abond acceptable to theTravis County Court in a sufficient amount to cover the funds inquestion.

The documents mentioned above reveal that Richard D. Jarratt has qualified as theAdministrator of the Estate ofKramer W. Peterson inboth Texas and Florida. These documents further reveal that there are specific devisees named in thewill of Kramer W. Peterson and that there is in existence anheir at law.

-1065-Hon. Jesse James, page 3, (M-222)

Section 37of the Probate Code reads as follows: "When aperson dies, leaving a lawful will, all ofhis estate devised orbequeathed by suchwill shall vest immediately in the devisees or legatees; and all the estate of such person, not devised orbequeathed, shall vest immediately inhis heirs at law; subject,however, to thepayment of the debts of the testator or intestate, except such as is exempted by law; andwhenever aperson dies intestate, all ofhis estate shall vest immediately inhis heirs at law,but with the exception aforesaid shall still be liable and subject in their hands to thepayment of the debts of the intestate; but upon the issuance of letters testamentary or of administration upon any such estate, the executor or administrator shall have the right topossession of the estate as it existed at the death of the testator or intestate, with the exception aforesaid; andhe shall recover possession of andhold such estate in trust tobe disposed of in accordance with law." Under this Section the duly qualified executor or administrator is entitled topossession of the entire estate as it existed at the time of death, as trustee for the devisees andheirs of the deceased.

Article 7.11 of theTexas Business Corporation Act reads, inpart, as follows:

"B. On receipt of satisfactory written andverified proof of ownership or of right to such fundwithin seven (7)years from the date such fundwas so deposited, the State Treasurer shall certify such fact to the Comptroller of Public Accounts, who shall issue proper warrant therefor drawn on the State Treasurer in favor of theperson orpersons then entitled thereto.
. . .II

-1066- !,Hon. Jesse James, page 4, (M-222)

There isno evidence that documents included in the file accompanying this request are false. It is therefore the opinion of this office that Richard D. Jarratt is entitled topossession of the estate of Kramer W. Peterson forpurposes of administration under theTexas Probate Code, and thatyou are required byArticle 7.11 of the Texas Business Corporation Act to certify such fact to the Comptroller of Public Accounts, who shall issue proper warrant therefor.
SUMMARY ----_-- In the absence of evidence that the documents on file in thismatter are false, under the facts presented, the State is required topay the claim of Richard D. Jarratt, Administrator of the Estate of Kramer W. Peterson, Deceased. trulyyours,

Prepared by Brock Jones Assistant Attorney General
APPROVED: OPINION COMMITTEE Hawthorne Phillips, Chairman Kerns Taylor, Co-Chairman W. V. Geppert John Reeves Sam Kelley John Grace
A. J. CARUBBI, JR. EXECUTIVE ASSISTANT

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