B-195618 L/M, JUN 18, 1980

B-195618 L/M, JUN 18, 1980

SUBJECT: OBTAINING FUNDS DUE THE ESTATES OF CITIZENS WHO DIE ABROAD

GENERAL COUNSEL:

WE ARE ENCOUNTERING DIFFICULTIES WITH A NUMBER OF BANKS IN WHICH ASSETS DUE THE ESTATES OF U. S. CITIZENS WHO DIE ABROAD ARE LOCATED. AS AN EXAMPLE, WE ARE FORWARDING THE FILE CONCERNING THE ESTATE OF FRANK LOZANO, A U. S. CITIZEN WHO DIED IN SPAIN. AMONG THE EFFECTS FORWARDED TO OUR OFFICE WERE TWO PASSBOOKS FROM THE NEW YORK BANK FOR SAVINGS, ACCOUNT NUMBERS 11-1,998,636 AND 11-2,004,182. OUR EFFORTS TO OBTAIN THE OUTSTANDING BALANCES FROM THESE ACCOUNTS HAVE NOT BEEN SUCCESSFUL.

WE REQUEST YOUR ADVICE ON HOW WE SHOULD PROCEED SINCE THE BANK DOES NOT ACCEPT OUR AUTHORITY UNDER TITLE 22, U. S. CODE, SECTION 1175, TO ACT AS STATUTORY CONSERVATOR OF THE ESTATE AND TO RECEIVE ANY AMOUNTS DUE THE ESTATE.

INDORSEMENT

ASSOCIATE DIRECTOR, FGMSD

CLAIMS GROUP (ROOM 5858)

RETURNED. SECTION 1175 OF TITLE 22, U.S.C. PROVIDES THAT THE COMPTROLLER GENERAL, OR HIS AUTHORIZED REPRESENTATIVE, SHALL ACT AS CONSERVATOR OF SUCH PARTS OF THE ESTATE OF A CITIZEN OF THE UNITED STATES WHO DIES ABROAD AS MAY BE RECEIVED BY OR AS ARE IN THE POSSESSION OF THE GENERAL ACCOUNTING OFFICE, AND TO RECEIVE, FOR AND ON BEHALF OF THE ESTATE OF THE DECEASED, ANY BALANCE DUE SUCH ESTATE AND TO DRAW THEREFOR ON BANKS, SAFE DEPOSITS, TRUST OR LOAN COMPANIES, OR SIMILAR INSTITUTIONS.

IN B-169616-O.M., MAY 8, 1970, THE CLAIMS DIVISION'S REQUEST FOR INSTRUCTIONS WAS ANSWERED AS TO WHAT COURSE OF ACTION SHOULD BE TAKEN WHEN A BANK REFUSES TO REMIT THE FUNDS OF A DECEASED UNITED STATES CITIZEN WHO DIED OVERSEAS WITHOUT EITHER A WILL OR HEIRS. A FORM LETTER WAS SET FORTH IN WHICH THE STATUTORY AUTHORITY OF THE COMPTROLLER GENERAL WAS REITERATED AND THE MANNER IN WHICH HE ACTED AS A STATUTORY CONSERVATOR OF THE ESTATE WAS EXPLAINED. THE FILE INDICATES THAT THE CLAIMS GROUP HAS WRITTEN SUCH A LETTER TO THE NEW YORK BANK FOR SAVINGS.

HAVING WRITTEN THE ABOVE-DESCRIBED LETTER, THERE SHOULD BE NO ADDITIONAL STEPS TAKEN REGARDING THE BANK. SECTION 1175 DOES AUTHORIZE THE COMPTROLLER GENERAL TO ACT AS A STATUTORY CONSERVATOR; HOWEVER, NEITHER THE STATUTE ITSELF NOR THE LEGISLATIVE HISTORY GIVE ANY INDICATION THAT CONGRESS INTENDED TO SUPERSEDE STATE LAW IN THE ADMINISTRATION OF ESTATES FOR ASSETS WITHIN THE STATE'S JURISDICTION. GENERALLY, THE DISTRIBUTION OF A DECEASED'S ASSETS, WHICH INCLUDES THE SYSTEM WHEREBY A FIDUICIARY ACCUMULATES THE ASSETS FOR DISTRIBUTION, IS A MATTER OF STATE RATHER THAN FEDERAL LAW. SEE UNITED STATES V. OREGON, 366 U.S. 643, 649 (DOUGLAS, J., DISSENTING 1961), AND CITATIONS THEREIN; AND B-184160-O.M., OCTOBER 3, 1975. INDEED, IN B-184160-O.M., WE RECOGNIZED THAT STATE LAW WOULD GOVERN THE DISTRIBUTION OF ASSETS OF A DECEASED INDIVIDUAL WHICH WE AMASSED UNDER OUR AUTHORITY IN SEC. 1175. THUS, WHILE CONGRESS HAS AUTHORIZED THE COMPTROLLER GENERAL TO COLLECT THE ASSETS OF THE DECEDENT, SUCH AUTHORIZATION WOULD SEEMINGLY HAVE TO BE IN ACCORD WITH STATE LAW. SEE GENERALLY EX PARTE WORCESTER COUNTY NATIONAL BANK, 279 U.S. 347 (1929).

ACCORDINGLY, IN CASES OF THIS NATURE THE CLAIMS GROUP SHOULD CONTINUE TO SEND THE LETTER AS OUTLINED IN B-169616-O.M., MAY 8, 1970. IF A BANK OR OTHER INSTITUTION CONTINUES TO REFUSE TO HONOR THE REQUEST, EFFORTS TO COLLECT THE FUNDS SHOULD CEASE. WHERE THE CLAIMS GROUP IS AWARE OF CREDITORS OF THE DECEDENT, AS HERE, THEY SHOULD BE ADVISED TO CONTACT THE BANK OR OTHER INSTITUTION.