Carlisle v. State Dept. of Public Health and Welfare

• Decision Date: 09 December 1960
• Docket Number: No. 7871,7871
• Citation: 341 S.W.2d 617
• Parties: George W. CARLISLE, Respondent, v. STATE DEPARTMENT OF PUBLIC HEALTH AND WELFARE, Appellant.
• Court: Missouri Court of Appeals

Page 617

341 S.W.2d 617

George W. CARLISLE, Respondent, v. STATE DEPARTMENT OF PUBLIC HEALTH AND WELFARE, Appellant.

No. 7871.

Springfield Court of Appeals, Missouri.

Dec. 9, 1960.

John M. Dalton, Atty. Gen., Hugh P. Williamson, Asst. Atty. Gen., Elmore G. Crowe, Jefferson City, for appellant.

Hal E. Hunter, Jr., New Madrid, for respondent.

McDOWELL, Judge.

Respondent, George W. Carlisle, applied for old age assistance benefits December 2, 1957. The application was rejected February 19, 1958, on the basis that he had transferred cash to his daughters without receiving a valuable consideration as required by statute. From this decision he perfected an appeal and a hearing was held before a Referee on June 25, 1958. Respondent appealed this decision to the Circuit Court of New Madrid County, and, on November 10, 1959, the court entered a judgment finding that the director's decision was arbitrary and unreasonable and remanded the cause with directions that respondent be restored to the old age assistance rolls effective as of the date of his last removal therefrom. From this judgment the cause was appealed to this court.

Based upon record evidence in the case, the director of the Department of Public Health and Welfare made the following findings of fact:

'George W. Carlisle lives with a daughter in Risco, New Madrid County, Missouri. His wife died March 22, 1955. He collected $2,088.30 from an insurance company for a fire that destroyed the dwelling house where he was living in Risco in September, 1956. Claimant was at the home of a daughter in St. Louis at the time of the fire. He deposited the insurance money in the First National Bank at Wellston, Missouri, in the name of his granddaughter, Joyce A. Stoner, 17 years of age. He received the insurance money in November, 1956. Claimant did not produce the bank statement or cancelled checks showing the disposition of this account but he testified he had withdrawn all the money and that the account has been closed. Claimant contends he paid $529.50 to his daughters, Mrs. Sylvilla Hardin, St. Louis, for money she had loaned him and also $600.25 to Mrs. Stoner, daughter, who also lives in St. Louis for money she had loaned him. According to the evidence submitted these payments were made in cash. These payments were made in November, 1956. No records were kept showing the amount of money loaned or when it was loaned but it was supposed to have been loaned over a period of years. Claimant was removed from the old age assistance rolls in February, 1957, after it was discovered he had received the insurance money and had paid $1,129.75 to his daughters. The evidence submitted it not convincing that claimant was indebted to his daughters. It is found that claimant transferred $1,129.75 to his daughters without receiving a valuable consideration as required by the statute.'

The director of Public Health and Welfare made his decision under Sec. 208.010 Laws of Missouri, 1959, V.A.M.S., disqualifying a person to receive benefits who has transferred property within five years prior to the investigation without consideration or inadequate consideration, which section reads:

'2. Benefits shall not be payable to any claimant who:

'(1) (a) Has made, or whose spouse with whom he is living has made, an assignment, conveyance or transfer of real or personal property or any interest therein of any value within five years preceding the date of the investigation without receiving fair and valuable consideration for said property. The date of recording or filing of any instrument affecting property that is assigned, conveyed or transferred by written instrument shall be considered as the date such assignment, conveyance or transfer occurred. 'Fair and valuable consideration'- ' as used herein means money or real or personal property received at the time of the transaction approximately equal to the market value of the property assigned, conveyed or transferred, and shall not for the purpose of this section be construed to include support, services, or other advancements made or to be made by a relative to a claimant. A payment of a loan to a relative may be recognized and eligibility not affected if the claimant can establish to the satisfaction of the division of welfare that the loan was bona fide and the proceeds of the loan was used by the claimant for his or his dependents' support or benefit.'

We here state the facts as disclosed by the record. George W. Carlisle, claimant, is a resident of New Madrid County, Missouri, living with his daughter-in-law, Juanita Carlisle in Risco. He and his wife resided at this residence for some thirty years. On March 22, 1955, his wife died. In September, 1956, claimant's residence was destroyed by fire and he received $2,088.35 insurance which he deposited in the First National Bank at Wellston, Missouri, in the name of his granddaughter, Joyce A. Stoner. The evidence shows that out of this insurance money claimant paid certain indebtedness incurred for funeral expenses of his wife and doctor bills for both his wife and himself and for back taxes on the property, leaving a balance of $1,129.75. This money he paid to two of his daughters; to Syvilla Hardin of St. Louis $529.50 cash and to Mrs. Stoner, $600.25. These payments were made in November, 1956.

The evidence shows that in 1951 claimant was placed on old age assistance rolls and in 1952 his wife was placed on the rolls; that together they were paid about $120 a month, this being their only income. In February, 1957, claimant was removed from the old age assistance rolls when it was discovered he had transferred cash to his daughters which had been paid him by the insurance company. Claimant did not appeal from the action taken by the Welfare office in removing him from the old age assistance rolls, but, subsequently, in December, 1957, he filed an application for old age assistance. This application was rejected on the basis that he had transferred cash to his daughters without receiving a valuable consideration.

Claimant testified that prior to his wife's death she had a prolonged illness; that she had been confined in a hospital and every week had to go to the doctor. He testified she first had a stroke of the brain and that they brought her out of that a little but in a couple of years she had another one and that in another two years she had a third stroke from which she died. He gave this testimony:

'Q. And during that time what income were you and your wife receiving? A. We was receiving old age assistance.

'Q. How much was that? A. That was $120 a month.

'Q. Did you and your wife have any income to pay the hospital and doctor bills that were incurred? A. Yes.

'Q. Where did you get the money * * * A. Our two daughters helped us out.

'Q. What two daughters was that? A. Flora Stoner and Syvilla Hardin.

'Q. Do you know how much money that you received from them, Mr. Carlisle? A. Well, not exactly. I figured it as near as I could figure it up and give them $500 and something apiece out of it, of the insurance money, paid it back to them. The agreement was this, when they was letting us have the money along, if we ever sold the place or anything happened to the place, why, we would give them their money back.

'Q. They had not been making you a gift then, is that right? A. No, sir, they wasn't making me a gift. They was helping us.'

He identified a receipt, (offered in evidence as plaintiff's exhibit 6), for $529.50 signed by Carl J. Hardin, husband of Syvilla Hardin, and testified that the receipt was for money that his daughter had paid out for their mother. The receipt reads: 'in payment of money loaned him to pay Mrs. Carlisle's medical expenses'. Claimant testified that he was out of a home and had no way to pay his bills or expenses, no income whatever and that he was staying with his daughter-in-law and his rent was piling up so bad that she was getting badly dissatisfied. As to the payment of $600.25 to his daughter, Mrs. Stoner, claimant gave this testimony:

'Q. Did you give her the same amount you gave Mrs. Hardin? A. I don't know exactly, but something over $500. She gave me a receipt and it's got misplaced somewhere in my papers going around and around.'

On cross-examination claimant gave this evidence:

'Q. You remember coming here to the welfare office in November '55, right after your wife died, and talking with the welfare worker? A. I really don't remember now whether I did or not. I believe I was in here one evening.

'Q. Your wife had died and you brought in some statement showing your indebtedness to Dr. Lange for $38.57. You remember that? A. Yes.

'Q. And Dr. Carlstrom for $14? A. Yes.

'Q. And Watkins funeral home, $599.50? A. Yes.

'Q. Apparently that is all the debts that you considered you owed at that time, is that right? A. Well, I give them all in at the time just like you have got it here now. That is the way I turned them all in. That is all the receipts I had.'

Witness testified he had about $15 or $20 in his pocket; that he had no money in any bank. He gave this evidence:

'Q. When did you close this bank account you had up at St. Louis? A. When I got done settling up these debts.'

He testified he had the cancelled checks up in St. Louis; that he had a box there in the closet where he kept them in his daughter's home in St. Louis. He said he did not bring the checks with him; that he had nothing but a suitcase to carry around.

Flora Stoner testified that she is the daughter of George Carlisle and Mary E. Carlisle and lives at 10111 Caryle, Overland 14, St. Louis. She stated:

'Q. Mrs. Stoner, did your mother have a prolonged illness prior to her death? A. Yes, she did.

'Q. How long had she been ill prior to her death? A. Four to five years.

'Q. Did she require treatment for her illness? A. Yes, sir.

'Q. What kind of treatment? A. Well, different kinds. She had strokes.'

She stated that her mother was confined in the...