A. W. GILCHRIST, GOVERNOR, FOR USE &C., PLAINTIFF IN ERROR,
v.
G. W. JEFFCOAT, ADM'R., ET AL, DEFENDANTS IN ERROR
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This case addresses whether proceeds from a life insurance policy are subject to the debts of a deceased insured person. The Florida Supreme Court held that when a life insurance policy becomes payable to the insured himself (rather than to a protected beneficiary) due to the death of the original beneficiary, the proceeds are part of the decedent's general estate and are subject to creditors' claims.
The court held that the proceeds are subject to the decedent's debts. Section 8154 of the General Statutes of 1906 protects insurance proceeds from creditors only when they are payable to the wife, children, or other designated beneficiaries for whose use and benefit the policy is declared. When the policy becomes payable to the insured himself, the protection does not apply, and the proceeds become part of the decedent's general estate subject to creditor claims.
“Whenever any person shall die in this State leaving insurance on his life the said insurance shall inure exclusively to the benefit of the child or children and husband or wife of such person in equal portions, or to any person or persons for whose use and benefit such insurance is declared in the policy; and the proceeds thereof shall in no case be able to attachment, garnishment, or any legal process in favor of any creditor or creditors of the person whose life is so insured”
The statutory protection against creditor claims applies only when insurance is declared for the benefit of specific protected beneficiaries.
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Whitfield, C. J.
An action was brought upon the adminsitrator’s bond for his failure to pay a creditor of F. J. Jeffcoat, deceased, from the proceeds of a life insurance policy on the life of the decendent. The policy was payable to the wife of the decedent, but provided that if the assured survived the beneficiary named, the proceeds should be payable to the assured. The beneficiary wife died before the insured husband and he left no children or wife.
In overruling demurrers, to a plea, the court in effect held that the proceeds of the insurance policy were not subject to the decedent’s debts.
Section 8154, General Statutes of 1906, provides that:
“Whenever any person shall die in this State leaving insurance on his life the said insurance shall inure exclusively to the benefit of the child or children and husband or wife of such person in equal portions, or to any person or persons for whose use and benefit such insurance is declared in the policy; and the proceeds thereof shall in no case be able to attachment, garnislb ment, or any legal process in favor of any. creditor or creditors of the person whose life is so insured, unless the insurance policy declares that the policy was effected for the benefit of such creditor or creditors; Provided, however, That whenever the insurance is for the benefit of the estate of the insured.or is payable to the estate or to the insured, his or her executors, administrators, or assigns the proceeds of the insurance may be bequeathed by the insured to any person or persons whatsoever or for any uses in like manner as he or she may bequeath or devise any other property or effects of which he or she may be possessed, and which shall be subject to disposition by last will and testament.”
“Under this statute, as against the wife and children of the insured, or as against any other person for whose use and benefit said insurance is declared in the policy, the creditor cannot claim.” Eppinger, Russell & Co. v. Canepa, 20 Fla. 262. The purpose of the statute is to provide for the wife and children of the insured and not primarily to exclude creditors where there is no wife or children or persons specially designated as beneficiary. See McLean v. Fisher, 60 Fla. 331, 53 So. 614.
In this case the wife having died and the policy being then payable to the assured, who at his death had no wife or children, and had not assigned, transferred or devised the policy, the above statute does not apply to exclude creditors, and the proceeds of the policy are a part of the deceased husband’s general property by virtue of the provision of the policy making it payable to him on the death of the beneficiary wife; and the same result would follow by virtue of the statute of descents making the husband the heir of the wife, there being no children. The policy is subject to the decedent’s debts.
The judgment is reversed.
Taylor, Shackleford, Cockrell and Hocker, J. J., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
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Arthur Y. Milam & the First Nat'l Bank of Tampa v. Davis, 97 Fla. 916 (Fla. 1929)…e any other chose in action, payable to him or his estate, and hence assets in the hands of her personal representatives. See 7 Cooley’s Briefs on Ins., 2nd Ed., 6335 et seq., 37 C. J. 565, and cases cited. Thus it was held in Gilchrist v. Jeffcoat, 64 Fla. 79, 59 So. R. 243, that where the husband took out a policy on his life payable to his wife, and, if he survived [*945] her, to himself, and his wife died before he did, the policy never having been assigned or bequeathed by the husband, upon the death…1 / 3
Authorities Cited
- Maclean v. Fisher, 60 Fla. 331 (Fla. 1910)
- Eppinger v. Canepa, 20 Fla. 262 (Fla. 1883)