WIDOW'S CLAIM.

Auckland Star, Volume LXV, Issue 69, 22 March 1934, Page 27

WIDOW'S CLAIM.

LIFE INSURANCE MONEY. APPEAL COURT HEARING. (By Telegraph.—Press Association.) WELLINGTON, Wednesday. Tho Court of Appeal is considering an originating summons issued in pursuance of the will of Bert Tremain, late of Petone, a builder, who died*on or about July 22, 1931. Plaintiff is Linda Margaret Tremain, the widow, and the Public Trustee is the defendant.

Tremain left a will appointing the Public Trustee his exscutor and bequeathing the whole of his estate to his wife. At the date of death he was indebted to tho Commercial Bank for an overdraft, for which the bank held a mortgage over two pieces of land and a life insurance policy in the A.M.P. Society transferred to it. After Trcmain's death the bank did not realise its mortgage over the lands, but in December, 1032, received from the A.M.P. Society £515, payable under tho policy, and out of this sum discharged the whole of deceased's liability to it, namely, £4GI.

The estate proved insolvent, there being a deficiency of liability over assets of approximately £5700. Plaintiff claims that by virtue of the protection afforded by life insurance Acts if the policy of insurance had not been transferred to tho bank she would have been entitled to receive all the moneys payable in respect of tho policy, notwithstanding the existence of unsecured creditors. Furthermore, in consequence of tho bank having elected to realise its security over the policy (by which she had almost wholly been deprived of benefit from it), sho claims she is entitled to marshal the securities held by the bank and to require that the proceeds of the sale by the Public Trustee of the lands formerly held by the bank as security bo applied in recouping to her the loss sustained bv the bank's election.

The originating summons asks whether her contentions are correct.