ASSURANCE GIFT

New Zealand Herald, Volume LXXVII, Issue 23719, 27 July 1940, Page 14

ASSURANCE GIFT

POLICY FOE A CHILD TRUST SHOULD BE CREATED INTENTIONS OF A FATHER When a father takes out insurance policies in favour of his children he should make in some proper legal form a declaration that the policies are held in trust for the children, otherwise the proceeds from them belong to his estate should he die before they become payable. This fact is made clear in a judgment of Mr. Justice Blair concerning the estate of the late Joseph Macartney Wilson, of Auckland. In a brief recital of the facts, His Honor said the case was a friendly one, and each of the defendants, his widow, his two sons. Joseph Liston Wilson and Chisholm Martin Wilson, and bis daughter, Gabrielle Mary Wilson, contended that, while there could be 110 dispute in law as to the right of .Joseph Liston Wilson to the policy executed in his favour, the other children were also entitled to the policies taken out for them. Policies Differ His Honor pointed out that in the case of the policy in favour of Joseph Liston Wilson there was a clause that the assurance "has been .declared by the assurer to be held in trust for the assured." This and other supporting evidence in the policy constituted a trust which entitled the assured to the proceeds of the policy. The policies on the lives of the other two children materially differed from the policy on Joseph Liston Wilson in that there was 110 declaration of trust by tho deceased in their favour. There was plenty of evidence of tho father's intentions regarding these policies, but none that carried them into a form recognised by the law. The right conferred by the policy 011 the assurer to borrow 011 it or surrender it for a cash payment without the consent of the assured passed to the executors of his estate. This last proviso was an important one in determining the legal ownership of these two policies. Title to Estate His Honor said lie had no doubt that the deceased intended his children to get the moneys, and it might be that he had not been aware of the difference in their wording as compared with the policy in favour of Joseph Liston Wilson. Judgment must be that the title to the policies 011 the live.s of the younger children belonged to the estate. John Alexander, an executor in^ the estate (Mr. A. H. Johnstone, K.C., and Mr. Waruock). was plaintiff, the defendants being Mary Louise Wilson (Mr. Cocker and Mr. Garlick). Joseph Liston Wilson (Mr. Wallace), Gabrielle Marv Wilson (Mr. Hubble) and Chisholm Martin Wilson (Mr. Henry).