In re Galloway's Estate

• Decision Date: 29 September 1936
• Docket Number: 43436.
• Citation: 269 N.W. 7,222 Iowa 159
• Parties: In re GALLOWAY'S ESTATE. v. LYNCH. HARBACH FUNERAL HOME
• Court: Iowa Supreme Court

269 N.W. 7

222 Iowa 159

In re GALLOWAY'S ESTATE.

HARBACH FUNERAL HOME v. LYNCH.

No. 43436.

Supreme Court of Iowa.

September 29, 1936

Appeal from District Court, Polk County; Frank S. Shankland, Judge.

This is a claim filed against an estate and allowed by the court. Defendant appeals. Opinion states the facts.

Reversed.

Vernon W. Lynch, of Des Moines, for appellant.

Theo. P. Eslick, C. B. Stull, and Richard S. Ries, all of Des Moines, for appellee.

MITCHELL, Justice.

The admitted and stipulated facts are that Mary O. Galloway died intestate on the 12th day of November, 1932, in the city of Des Moines, and left surviving her as her only heir at law, a minor son, of the age of nine years. She and her husband had been divorced. The only funds coming into the hands of her administrator were the proceeds of a life insurance policy upon her life, which are the only assets in the estate.

The appellee filed its claim for funeral expenses. The administrator refused payment.

The reasonableness of the claim is not questioned. The only question in the case is whether or not the administrator should, out of the proceeds of this life insurance policy pay the funeral expenses. The lower court allowed the claim and ordered it paid. The administrator has appealed.

Section 8776 of the Code of Iowa, 1931, provides as follows: " A policy of insurance on the life of an individual, in the absence of an agreement or assignment to the contrary, shall inure to the separate use of the husband or wife and children of said individual, independently of his creditors."

In the case of Miller v. Miller, 200 Iowa 1070, at page 1073, 205 N.W. 870, 872, 43 A.L.R. 567, in construing this statute, this court said: " It is true that the proceeds of an ordinary life policy, payable to the estate of the deceased, can never come into his possession and are payable to his executors or administrators only after his death. Nevertheless, it is a valid and subsisting contract and ripens immediately upon his death into a chose in action and, unless the distribution thereof is controlled by statute, the proceeds of a policy payable to the estate or executors or administrators of the insured would pass, under the general statute of descent, to his heirs. The executors or administrators of the estate of the insured are not beneficiaries, but in their representative capacity the proceeds are payable to them for the purpose of distribution to the beneficiaries."

In the recent case of In re Will of Grilk, 210 Iowa 587, at page 589, 231 N.W. 327, 328, Justice Morling, speaking for the court, said: " These statutes, particularly the latter, plainly establish public policy of the state that the avails of life insurance shall be devoted to the benefit of surviving spouse and children free from payment of debts. These statutes are a part of the exemption legislation of the state, the main purpose of which is to support and protect the family, the spouse and children, and...