73 Miss. 179 | Miss. | 1895
delivered the opinion of the court.
The appellants, creditors of E. C. Patty, deceased, exhibited
The breaches of the bond alleged are:
1. That the administratrix failed to return, within the time required by law, a true inventory of the property, money and rights in action of the intestate.
2. That when the inventories were made the administratrix failed and refused to return or account for certain personal property of said estate of the value of $700.
3. That the administratrix failed and refused to put upon her inventory certain specified sums of money collected by her after the death of her intestate on choses in action which belonged to him.
i. That at the time of his death the life of the intestate was insured by policies aggregating $12,000, the premiums on all of which the intestate had paid, all of which policies were payable to the said Ella H. Patty as beneficiary thereof, and that on said policies there had been paid to her the sum of $11,999, of which sum $10,000, and no more, was exempt by law from the claims of creditors of said intestate. But said Ella H. Patty, claiming the whole sum realized from said policies as her individual money, had failed and refused to account for any part thereof as administratrix of said estate.
This bill was filed in October, 1893. In September, 1893, the administratrix had reported the estate as insolvent, and at the October term of the court it was declared insolvent. The
By the decree it is found that the administratrix bad, before the institution of this suit, and in the course of administration, been directed and required to account for the property and money named in the second and third assigned breaches of her bond in this cause, and had failed' and refused so to do, but had wasted and misappropriated said property and money, by reason of which her bond had become forfeited; that the insurance money referred to in the bill was not assets of the, estate, and therefore the complainants were not entitled to any relief touching that fund. The court further decreed that the recovery decreed against the administratrix and the sureties on her bond, should inure to the benefit of all creditors of the estate equally, and denied to complainants the right to priority of satisfaction of their demands.
The defendants do not appeal or assign error, nor do the complainants "assign for error any other action of the court below than, first, in ruling that the proceeds of the insurance policies were not assets of the estate; second, in denying to complainants priority of satisfaction out of the recovery on the bond.
Of the policies of insurance upon the life of the intestate, two were in benevolent secret societies, one in the Knights of Pythias for $8,000, and one in the Knights of Honor for $2,000. Under the charters and by-laws of these societies it is provided that the proceeds of policies issued by them shall not be subject to the claims of the creditors of the assured. The chancellor was of opinion that this limitation was effectual to exclude the creditors from résorting to the proceeds of the policies, and since excluding the sum of these policies — $5,000—there remained only $7,000 of insurance, while the statute (code, § 1964) exempts $10,000 of insurance, there was no part of the fund liable to the creditors of the assured.
We have reached the same conclusion as the chancellor in
But the bill in this cause is not framed for the purpose of subjecting the money the intestate illegally invested in the purchase of the policies. There is no averment that Patty was insolvent when the premiums were paid, nor does it appear when they were paid, nor in what amounts, nor whether the complainants were then his creditors. _ The bill proceeds upon the postulate that, because the intestate paid the premiums, the policies were his property, and their proceeds assets of his estate. But it is well settled that a policy of insurance, payable to another than the insured or his legal representatives, is not a part of his estate. Bishop v. Curphey, 60 Miss., 22; Cables v. Prescott, 67 Me., 582; Simmons v. Biggs, 99 N. C., 236; Conigland v. Smith, 79 N. C., 303; 2 Woerner’s Law of Admin., 647; In re Van Dermoor, 42 Hun (N. Y.), 326.
2. The court did not err in holding that the recovery upon the bond inured equally to the benefit of all creditors of the intestate.
Appellants invoke the decision in Burruss v. Fisher, 23 Miss., 228, in support of their contention that their claims should be preferred in the distribution of the sum recovered in this proceeding upon the bond of the administratrix. The decision in that case is supposed by counsel to be of controlling effect in the present one, and, while appellant’s counsel rely on it, we
The estate here is insolvent, and its assets have been wasted by the administratrix. If the complainants are permitted to apply the recovery on the bond to the payment of their demands, other creditors equally entitled to the security of the bond will be left without remedy, and this is what the statute is designed to prevent.
The decree is affirmed.
Suggestion of error overruled.