77 Ind. App. 13 | Ind. Ct. App. | 1921
Complaint by appellee to set aside as ..fraudulent a conveyance of certain real estate made by William W. Perkins and wife to appellant. From a judgment subjecting said real estate to the lien of a judgment in favor of appellee to the extent of $234.59 appellant appeals and for error assigns the overruling of his motion for a new trial.
The undisputed facts as shown by the evidence-are that on April 17, 1918, William W. Perkins, being the owner of the real estate' in question, his wife joining with him, conveyed the same to appellant for a stated consideration of one dollar. William W. Perkins and Louis T. Morgan at the time when this conveyance was made were jointly indebted to appellee- on a note for $475 executed in April, 1917. In September, 1919, said note was reduced to judgment, the amount then due being $575.96. In 1914 William W. Perkins and wife executed a mortgage on said real estate to the Real Estate and-Improvement Company to secure the payment of an indebtedness of $1,200, and in order to further secure the payment of such indebtedness, said mortgagors assigned to the mortgagee a life insurance policy of $1,250 on the life of William W. Perkins payable to his wife, and to appellant. At the time of making said conveyance there was a balance of $876.81 owing on said mortgage indebtedness. After the making of said conveyance and continuing to his death, William W. paid $214.68 on the debt secured by said mortgage,leaving $662.13 due on said debt when he died, which was deducted from the proceeds of said insurance policy in full payment of said mortgage indebtedness. The balance of proceeds of said insurance was paid to appel
The contention of appellant is that the decision is not sustained by sufficient evidence and is contrary to law.
Assuming the value of the real estate at the time of the conveyance to be $2,100, the inchoate interest of the wife was $700. The liens on account of the mortgage, taxes, and sidewalk amounted to $1,065-31. With the amount of such inchoate interest and liens deducted, the-value of the interest of William W. in said real estate was $334.69, which is $265.31 less than the amount which he was entitled to as exempt from execution. Under these facts appellant contends that the real estate conveyed to him was exempt from execution and that the conveyance to him was not fraudulent and should not have been set aside.
Appellee contends that where a judgment debtor has borrowed money and given a mortgage to secure such debt and has also made provision for the payment of such mortgage debt by the creation of a fund or right out of which that debt should be paid and the arrangement is later carried out, thus releasing the mortgage lien, the amount of the mortgage cannot be included to diminish the net worth of the judgment debtor in order to avoid a lien on the property that would secure the payment of the judgment. In other words, appellee says that upon tlie death of William W. he had the equitable right to have the proceeds, arising from the insurance policy, applied upon the mortgagee clebt, and
. The decree is contrary to law and is reversed with directions to sustain appellant’s motion for a new trial and for further proceedings not inconsistent with this opinion.