PAYMENT OF DEBTS

Evening Post, Volume CXV, Issue 121, 25 May 1933, Page 3

PAYMENT OF DEBTS

POLICY MONEYS EXEMPT

FULL COURT DECISION

A Full Court judgment delivered today concerning the estate of John Staccy AdeanCj of Auckland, deceased, decided that policy moneys in the estate were exempt from liability for the payment of the testator's debts. The case arose out of an originating summons taken out by the trustees of the will of the deceased. Among the assets of the estate was a sum of nearly £2000, being the proceeds of an insurance policy on the life of the testator. The balance of the estate was not. sufficient to satisfy in full the claims of the creditors, and a dispute arose between certain of the creditors and the residuary beneficiaries as to whether the policy moneys were liable for the payment of the debts of the estate. The questions of law-asked by the originating summons are whether, having regard to the effect of the Life Insurance Act, 1908, the testator in his will had, by express words specifically referring to life, insurance policies, declared that the samo should be applied in payment of his debts; and whether the policy moneys are available for payment of such debts. Owing to a recent decision of Mr. Justice MacGregor, the summons was reserved for argument boforo tho Full Court. The Judges concurred, in not allowing any part of tho costs to come out of the policy moneys, directing that they should co'rnb out of the balance of the estate. At tho hearing Mr. 11. E. Harrowclough appeared for tho plaintiffs, and Mr. 11. Ilampson and Mr. W. 11. Cocker for tho defendants.