NOT TO BE TOUCHED

Gisborne Times, Volume LXXIII, Issue 11954, 26 May 1933, Page 4

NOT TO BE TOUCHED

DEAD MAN’S INSURANCE ONI/Y ACL " for RELATIVES. •

CREDITORS’ CLAIMS FAIL

APPEAL COURT DECISION.

(Press Association) WELLINGTON, May 25 In delivering reserved judgment in the case concerning the estate of John Stacey Adeane, the Court of Appeal held that -the policy moneys in. question were not available for the payment of the testator’s debts, and that a decision to the Contrary recently decided on'very similar fads was not good law. A« the litigation had been rendered necessary by the claims of the creditors that' the policy moneys were liable, the court held that -e costs of the trustees, a s between solicitor and client, although payable out of the estate, should not be borne at all by the policy moneys, but should be paid out of the balance of the estate. A similar order was made as to the costs ot the beneficiaries, which were fixed at 25gns. and disbursements. B v his' last will tlie deceased bequeathed all ,hi s property, froth real and personal, including all insurance moneys, upon trust for payment of hi s debts and then to his wife and children in certain proportions. This will was proved by the two trustees appointed, but one later retired and the Guardian Trust Office was appointed in his stead. The assets without the proceeds of an insurance policy were not sufficient to pay the debts in full and an order iwas made appointing the Guardian Trust and the remaining executor as administrators. Asvthe amount insured was less than £2OOO the administration took the view that the proceeds of rho policy were protected by the Life Insurance Art and the Guardian Trust paid out certain portions of the proceeds to certain adult children and to tho wife.

Subsequently in September last. Mr. Justice. McGregor decided,a case in which he held that iu the ca.-.c of a will in the terras of Adeane’.-; will the proceeds of an insurance pol icy were not protected. Accordingly a summons was taken out to determine the question in Adeane’s case, and was removed into the Court or Appeal for argument.