Case ID: iowa_56/html/0620-01.html
Source: Caselaw Access Project
Author: {"author": "Seevess, J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

McClure v. Johnson.
    1. Life Insurance: proceeds of : will. The proceeds of a policy of life insurance which is payable to another than the insured do not constitute assets of his estate, and cannot be disposed of by him by will.
    
      Appeal from Jefferson Cvrcmt Oov/rt.
    
    Wednesday, October 19.
    The plaintiff is the executor of Nathan Johnson, and brought this action to recover of the defendant, who is the widow of said Johnson, a sum of money paid to her by the “Freemason’s Protective Association of Iowa, at Keokuk.” The said Johnson was a Freemason, and applied to said association to become a member and upon being accepted he agreed to “ abide by all the rules and regulations adopted by the association or its official board.” The association is of a benevolent and charitable character. Its object being “ to secure to the families of deceased members * * such pecuniary aid as may be provided” by the association “for the purpose of assisting to defray the expenses of the funeral of such deceased members, and for the relief of their families.” Every Freemason becoming a member was required to pay a stated sum when he became such. The applicant was required to state his name, age, residence and condition of his health in his application. Upon the death of a member each surviving member was required to pay to a named officer of the association one dollar and ten cents, and the association bound itself to pay a sum equal to one dollar for every member at the time of the death of a member “to the wife, husband, children, mother, sister, father or brother of such deceased member, and in the order above named.”
    In accordance with the foregoing, the association upon the death of said Johnson paid the money in controversy to the defendant. The said Johnson made a will which has been duly admitted to probate. It provides: “I direct that the. mortgage on my hotel property in Fairfield, Iowa, be paid out of the proceeds of an insurance policy of $600 in the Masonic Protective Association at Keokuk, Iowa, which I hold and which is payable to me.” There was a trial to the court, judgment for the defendant, and plaintiff appeals.
    Slagle, Aeheson dk McCraelien, for appellant.
    
      Culbertson d¡ Jones, for appellee.
   Seevess, J.

Upon becoming a member of the association Johnson contracted with it that any money which might become dne upon his death should be paid to the x , _ defendant for the purpose above stated.. Upon the condition the money should be so paid the association obligated itself to pay. The contract was one of insurance and by its express terms the insurance was to be paid to the defendant if she was living at the time her husband died, and the money became payable. She alone could have maintained an action therefor. The estate of Johnson was not entitled to the money. The deceased had no interest in the money and therefore could not dispose of it by will. The statute provides: “ The avails of any life insurance or other sum of money payable by any mutual aid or benevolent society upon the death of a member of such society are not subject to the debts of the deceased except by special contract or agreement, but shall in other respects be disposed of like other property left by the deceased.” Code, § 2372. This statute, and also Code, § 1182, contemplate a case where the policy of insurance is payable to the deceased or his legal representative, and not where it is payable to another person for the use and benefit of such person. The case of Kelly v. Mann, executor, post, 625, is distinguishable. ■ In that case the money received from the insurance company was assets belonging to the estate, and being such it was held under the statute it should be inventoried and disposed of according to law.

Aeeiemed.