United States v. Stevens

Background

Thomas McGovern, an immigrant and former U.S. Army soldier, applied to the National Home for Disabled Volunteer Soldiers at age 72. His wife and daughters left him in 1904 and were unaware of his whereabouts for about twenty years; his son lived with him until 1918 and was later committed to a state home. McGovern said he did not know the names or addresses of his nearest relatives and sought admission because he could not earn a living. A doctor found his mind sound but his body weak. When he joined, he signed an agreement saying that on his death while a member his personal property would pass to the Home unless heirs or legatees reclaimed it within five years. He died intestate in 1928 with savings on deposit and no claim was made within five years.

Reasoning

The Court asked whether the Home could enforce that contract and take McGovern’s unclaimed property. It held the agreement and the 1910 law authorizing such agreements were clear and valid. The Court relied on Massachusetts law allowing contracts that arrange for property to be disposed of on death and concluded the agreement was not simply a will. The record showed McGovern entered the arrangement voluntarily, received care and shelter, and the contract did not appear unfair. Because no heir or legatee reclaimed his property within the five-year period, ownership passed to the Home.

Real world impact

Veterans who sign such agreements may have their unclaimed personal property transferred to the Home unless heirs reclaim it within five years. Homes may receive funds to benefit their inmates when no timely claim is made. This ruling settles that these voluntary contracts can be enforced and upholds the Home’s right to unclaimed member property.