Harting v. Jockers

Citations

• 136 Ill. 627
• 27 N.E. 188

Syllabus

<p>1. Fraudulent conveyance—transfer for grantor’s use—as, for his future support. The general rule of law is, that a voluntary conveyance or transfer of property by a debtor, as against existing creditors,is fraudulent and void. A debtor may not, by gift or other voluntary transfer of his property to others, or by transfer and conveyance of it for his own use, as, for his future support, hinder or delay his creditors in the collection of their just demands.</p> <p>2. An agreement for the future support of the grantor is a valuable consideration, but being in effect a transfer of property to the use of the grantor, such a consideration will be insufficient to uphold the conveyance, when to do so will operate to the prejudice of existing creditors.</p> <p>3. In such case it is wholly immaterial that no actual fraud is shown to have been intended, for the result would be the same,—that is, to give to the debtor the beneficial enjoyment of that which rightfully belongs to the creditor; and the transaction is therefore wanting in the good faith necessary to the validity of the contract. If the act done will necessarily have the effect of hindering and delaying creditors, the law will presume that it was done with a fraudulent purpose and intent.</p> <p>4. The mere fact of indebtedness, however, will not amount to a prohibition of the debtor’s power to make a gift, or to provide for his future support, or the support of others. If the debtor retains property amply sufficient for the payment of all his debts, he has a right to contract for his support for a longer or shorter period, as he may think-best.</p> <p>5. So if one finding himself aged, and possibly decrepit, seeks, by contract for his future support, to secure the necessaries and comforts which his declining years and strength demand, he may lawfully use his property for such purpose, and his transfer for that purpose will be upheld, unless the natural consequence of the act is to hinder, delay or defraud his cr