Document: 376 U.S. 306 84 S.Ct. 742 11 L.Ed.2d 724 Gust YIATCHOS, Petitioner,v.Pearle W. etc., et al. No. 48. Argued Jan. 7, 1964. Decided March 9, Ernest R. Whitmore, Jr., Wenatchee, Wash., for petitioner. Charles Cone, respondents. Mr. Justice WHITE delivered the opinion of Court. 1 Two Terms ago in Free v. Bland, 369 663, 82 1089, 8 180, where federal savings bonds purchased with community funds were registered a co-ownership form and co-owners husband wife, survivor was held entitled to proceeds without liability account any amount beneficiaries deceased co-owner, despite conflicting state law purporting forbid married couple make survivorship arrangements respect property requiring such pass as part estate accordance his will or intestacy laws. The success management national debt deemed depend upon successful sale bonds, one inducements purchasers being provisions which afforded 'a convenient method avoiding complicated probate proceedings.' U.S., at 669, S.Ct., 1093. State interfered legitimate exercise power required give way under Supremacy Clause Constitution. 2 Court nevertheless recognized that not be used shield fraud prevent relief 'where circumstances manifest breach trust tantamount thereto on while acting capacity manager general property.' 670, 1094. scope application exception regulatory imperative—'the doctrine applicable case,' 670—671, 1094—were left decision other cases. 3 This is those Petitioner brother Angel Yiatchos who die 1958 1950—1951 belonging himself wife United States Savings Bonds face $15,075. owner they made payable death brother, 1954, naming executrix bequeathing all cash owned by him time four sisters nephew. brought suit appropriate court Washington establish ownership relying regulations providing registration beneficiary case 'the sole absolute owner, payment reissue though bond name alone.' 31 CFR § 315.66. trial court, stipulated facts, sustained claims insisted since must divided into two equal parts, one-half go half distributed will. Supreme affirmed, holding deceased's 'purchase alone or, after death, exclusively rights respondent wife' void endeavor divest interest her own having been fiduciary duty manage benefit community, '(a) this (was) constructive fraud.' Petitioner's claim named therein rejected '(r)espondent widow had vested proceeds' '(t)he descent decedent's controlled RCW 11.04.050, and, therefore, according terms will.' In re Yiatchos' Estate, 60 Wash.2d 179, 182, 373 P.2d 125, 127. We granted certiorari consider an asserted conflict supra, decided appeal considered rendering its judgment. 4 Under petitioner unless committed fraud. Since construction regulation force law, Public Utilities Comm'n California States, 355 534, 542—545, 78 446, 451—453, 470; Standard Oil Co. Johnson, 316 481, 484, 62 1168, 1169, 86 L.Ed. 1611, are involved, whether there bar particular determined matter supra; Clearfield Trust 318 363, 63 573, 87 838. But applying standard we shall guided insofar interests created concerned. It would seem obvious may device deprive she enjoys transferable but bonds. 5 Proceeding these premises, note spouses agree change status either agreement become effective spouse, Rev.Code Wash. 26.16.120; 127, gift during lifetime; Hanley Most, 9 429, 458, 115 933, 944. Thus could have consented husband's inclusion portion belonged he dispose death. If gave consent, if ratified purchase conduct not, purposes, sufficient avoid command regulations, 6 So far apparently agrees, denies need further inquiry, claiming because record silent about knowledge consent no produced facts negativing knowledge. think course suggested amicus curiae brief preferable. factual stipulation parties prior supra. Before precluding conduct, should opportunity remand prove actual concerning participation 7 Petitioner, however, also objects inquiry acquiescence rests erroneous assumption object transfer present value even their value, less than property, deceased, says petitioner, attempting away only making use simple provided what law. validity contentention turns question entirely clear resolved remand. According below, 'vested interest' mean before has each item estate, including involved cannot forced take something else division between herself half. circumstances, say right, it exists, insubstantial, allow designated effect involuntary impermissible conversion widow's assets. On hand, 26.16.030 provides 'The control personal like disposition separate except devise more thereof.' widow, specific assets satisfied from money then derogation Upon dissolution Yiatchos, free, dissolution, pleased. He might Instead elected same result utilizing feature permitting spanning lives. assumption, then, instrument fraud; control, preempting, necessary, inconsistent interferes Federal Government's borrow money. therefore surviving spouse does asset. barred nature half, disposed choice. transaction ab initio rather virtue regulation. husband, matured cashed. During life convert them presentation surrender 'as registration.' 315.65. Aside possible consequences wife's ratification, long alive him—the bonds—for purposes just so used. Thus, requires provisions, nothing prohibition against transmit is, reasons stated above, forbidden 10 add caveat our least appear, gross compare net debts. understanding chargeable debts Ryan Ferguson, 356, 28 P. 910. contravene expressed require bear share borne passed legacy judgment reversed relates subject above remarks allocable thereto. As vacated remanded proceedings opinion. ordered. 12 Judgment remanded. 13 CLARK, whom DOUGLAS joins, dissenting. 14 180 (1962), operated undivided spouses. extent whole interest. 15 appears me proper order vacate consideration following matters, involve interpretation law: 16 (1) Was designation act within statutory (Wash.Rev.Code s 26.16.030) powers, did to, subsequently ratify, transaction? answered affirmative, both questions negative, 17 (2) What debts, separate, estate? And 18 (3) Is receive resort bonds? remaining. satisfy remainder, subjected deficit, balance any, 19 conjectures so, allowing work spouse's proposition doubtful authority support it. Further, very least, exist, allowed override designations passing important issue briefs oral argument.

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