The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1931-05-14
DECISION AFFECTS
GOVT. lS. RISKS
Supreme Court of United
States Makes Ruling At
fecting Beneficaries
WAS A MINNESOTA CASE
Appeal Taken From Judge OF
PrObate's Decision Taken
to Highest Judiciary
(Wsnmar Ga;zette)

(WfIlmar Gazette)
The matter of the proper dis
position Of the war risk insurance
money Of the late Jacob e. Hall
kbom has gone all the way to the
|1court supports the contentious Of
United States Supreme court and
in a recent important decision the
county Attorney Charles A. Sven
son and Attorney H. T. Ronning, OF
Willmar.
The late Jacob e. Hallbom car
ried war risk insurance, his father
being named as beneficiary. The
insurance was paid to the father
In monthly installments during his
life. The father lived only a few
months after the death Of the in
sured. The law provides that in
case Of the death Of the beneficiary
the unpaid part Of the policy shall
be paid in full to the heirs Of the
deceased insured. The father died
before the completion Of the pro-
baton Of the estate of Jacob q.
Hallbom.
In the final account of the admin
istration of the estate of Jacob e.
Hallbom, made in the probate court
by the administrator, Edward e.
Pagel, the insurance money, except
that part covered by the few
monthly payments made to the
father during his life, was included
as belonging to the estate. The
court made an order approving the
final account as made by Admins
traitor Edward e. Pagel.
From this order an appeal was
taken to the district court and the
order of the probate court approx
ing the final account was reversed.
On appeal to the state supreme
court the decision of the district
court, reversing the probate court,
was approved. The point at issue
was the disposition Of the money
from the government insurance.
There was the question Of preferred
classes. The fact is commonly
recognized that life insurance is
written for the benefit and protec-
ton Of the dependents Of the In.
sured and insurance money COM
monty goes to the beneficiary
named in the policy, and it belongs
to the beneficiary free from any
claims against the estate of the
insured; that it is a special pro-
lection Of those specifically pro-
vided for by the insurance policy
provision. yy
1t was this generally recognized
preferred classes status Of benefic-
larry under insurance policies, OBJ
viously, that accounted for the &C
ton of the district court in revers-
ing the probate court and of the
state supreme court in affirming
the district court action. ~
AS the application for certiorarf
to bring the case before the United
States Supreme court was pending,
Mrs. Selma Hallbon., mother Of
Jacob Hallbom, and widow Of the
beneficiary named in the policy,
died. John G. MacLean, admins
traitor Of the estate Of Selma Hall
bonn, became party, as such rep
resentative, to the action. He was
represented by Fred w. Putnam
and Grin w. Dulman, Minneapolis
attorneys. 't 81
The decision Of the United States
Supreme court in this case seems
to hold that the federal statute
provides that insurance money Of
this kind shall go to the beneficiary
named in monthly payments until
paid in full, but that in the case Of
the death Of the beneficiary, the
unpaid balance of the money Is
payable in full at once and be-
comes a part of sthe estate not Of
the beneficiary but Of the insured.
In concluding its review Of the
case the Supreme Court Of the
United States seems to be asking
the Minnesota Supreme Court in a
reconsideration Of the case, to
answer two or three questions, the
questions being something like this:
IF this money is for the benefic-
iaries only, as you hold, what
claim has the administrator Of
the estate Of Selma Hallbom
to the money? or, Why should
not the money be distributed as a
part Of the estate Of Jacob Hailbon,
the man insured?
Obviously. the Minnesota SUI
preme court, in decentralization
Of the case. will reverse its previous
decision. In fact, In cases before
the court and recently concluded,
the decision in this case seems to
have been followed. ~
The case is an important one be-
cause the decision will be followed
by courtsall over the United states.
The legal victory for County ATT
torney Charles A. Swenson and At
torney H T. Ronning is a notablet
one and they are now receiving
the CONGRATULATIONS If their friends.