Ex-Las Vegan’s estate to go to state instead of family

CARSON CITY -- A retired Las Vegas police officer who died in 2008 will get his final wish: His relatives will get no part of his $3 million estate.

Instead, all of the money will be given to the state for education, following the law.

Nevada Supreme Court justices ruled 7-0 that the "plain and unambiguous language" of state law allowed William Melton to disinherit his daughter, Vicki Palm, and two half sisters. Because Melton disinherited all family members in a handwritten will, the court ruled his estate goes to the state. His companion was in his final will, but she died before he did.

The decision overturned the ruling by Clark County District Judge Lee Gates that the estate should be given to Melton's daughter.

In their decision, justices noted that Melton in 1975 had executed a formal will giving nothing to his daughter, but leaving most of his estate to his parents and small portions to a brother and other relatives. He also decided that a small portion should go to his live-in companion, Alberta "Susie" Kelleher.

Then on the way home from his mother's funeral in 1995, he wrote Kelleher a letter giving her his entire estate and specifying that not "one penny" go any of his relatives. His father had died earlier. But Kelleher died at age 81 in 2002, before he did. Melton died on July 20, 2008.

Whitney Warnick, a Las Vegas lawyer who represented Palm, said she will not seek a rehearing but added the decision was "hard on her (the daughter)." Warnick said Melton and Palm's mother divorced when she was young, and they remained in the Midwest. He said Palm occasionally visited Melton in Las Vegas .

He said Melton was "very reclusive" and lived for many years with Kelleher in a home near downtown. He made his money through real estate investments.

Kevin Benson, the deputy attorney general who represented the state before the Supreme Court, said he knew nothing of Melton's story, but bank records show that before his death, Melton had given a considerable amount of money to a friend. Most of his remaining estate, he added, was in cash. There was no obituary written about him.

"He obviously didn't get along with his family," Benson said.

After Melton's death, Clark County Public Administrator John Cahill found Melton had a daughter, Palm, who sought proceeds of the estate, as did Melton's half sisters, Linda Melton Orte and Sherry L. Melton Briner.

Benson said it was not known that Melton had a daughter until after his death. But Warnick said Palm "certainly was known to Melton."

After extensive legal proceedings, Gates distributed the estate to Palm and awarded nothing to the half sisters. The half sisters then appealed to the Supreme Court.

In a 28-page opinion issued Thursday, justices ruled "holographic wills" or those written by hand that are signed and dated have the same effect as formally executed wills.

They added that state law "disfavors escheat," or having property revert to the state when someone declares no heirs. But they stated the law also "strives to effectuate the intentions of tesators," or the person making out the will.

Consequently, they ruled that if a person "disinherits all of his or her heirs," then their requests should be granted and the estate automatically passes to the state for education purposes.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.