175 A. 400 | Pa. | 1934
Blythe S. Weddell died October 12, 1931, leaving to survive him his wife and one daughter. During his lifetime, between October 11, 1923, and February 5, 1930, he had taken out eight policies of life insurance aggregating in amount $27,000, of which sum his wife was named as beneficiary to the extent of $22,500 and his daughter $4,500. On October 7, 1931, the insured executed an insurance trust agreement covering the entire eight insurance policies, in which he named the Fidelity Trust Company of Pittsburgh trustee, and provided therein that, in the event of his death, the trustee should collect the proceeds of the eight policies and administer the fund for the suitable maintenance and support of his wife and daughter. Subsequent to the death of the insured, plaintiff, as his administrator c. t. a., filed the bill in this case, to have the insurance trust declared void and the proceeds payable under the several policies turned over to plaintiff for the benefit of decedent's creditors. The court found as a fact, upon ample evidence, that the insured was insolvent at the time of executing the insurance trust agreement and had been for a considerable time previous thereto. The question for determination is whether or not the execution of the trust agreement by the insolvent insured was in fraud of his creditors. We agree with the lower court that the agreement was not unlawful nor a fraud upon the creditors of insured, and that the bill should be dismissed.
The wife and children of every man have an insurable interest in his life, and the law has always looked with favor on life insurance contracts made for their comfort and maintenance. From our earliest cases down to the present day this court has upheld and encouraged such provisions and protected them from claims of creditors: Stutzman, Admr., v. Fidelity Ins. Co.,
The decree is affirmed at appellant's cost.