ASSIGNMENT OF LIFE POLICY. IMPORTANT CASE.

Evening Post, Volume LXXXIII, Issue 94, 22 April 1911, Page 5

ASSIGNMENT OF LIFE POLICY. IMPORTANT CASE.

An important point in law came beNfore the Chief Justice in Chamber* today, for argument on an originating summons between the Public Trustee, as administrator of the estates of John. Redd, late of Bulls, farmer, and as representing the beneficiaries under deceased's will other than the defendaaits,, and Ann Willis, of Bulls, spinster, as representing herself and Mary Redd, asIckleford, Hertford, widow, having a similar interest. The deceased "by his vSI,, dated 31st March, 1898, ga,ve his estate, excluding a life policy, after payment of certain legacies, to his stepbrothers and sisters. On the 26th September, 1899, deceased by -a deed executed in England, transferred the policy to a trustee (eince dead) upon trust, to hold £100 of the policy money for his stepmother, Mary Redd, and the remainder for his cousin, Ann Wallis. This assignment -was retained in England by the solicitors, and notice of the assignment forwarded to tie Government Life Insurance Department. On deceased's deadi the sum of £377 9s was paid to tiie PnbHc Trustee by. the department, on an undertaking to have the title to the policy definitely decided. The assignment and notice were goods in England to effectually vest in the policy in tbe assignee. The tronfcle arose by the fact that the Life Insurance Act, 1908, of New Zealand requires that a policy can only be assigned by a. transfer endorsed on the policy signed by transferor and transferee, and duly registered. Without this, the assignment is invalid and cannot be recognised, but the court has power to enforce trusts and equities. The assignment in IMb case was a good equitable assignment in law, but, being a voluntary fcrnst, the further difßeulty arises that tbe law wiH not recognise a voluntary j trust unless everything has been done, to effectually vest the legal estate in the trustee. Mr. J. W. Macdonald appeared for th© Public Trustee, ssA Mr. H. yon Haaafc on, behalf of tne defendants. Judgment was reserved.