Moore v. Wood

Citations

• 100 Ill. 451
• 1881 Ill. LEXIS 117

Syllabus

<p>1. FrauduiiEnt conveyance—to hinder and delay creditors—secret trust. A debtor can not convey real estate to another, to be held, wholly or in part, in secret trust for himself, so as to cut off the rights of existing creditors;—for although such a transaction may be upon a valuable consideration, yet it lacks the element'of good faith. While it professes to be an absolute conveyance on its face, there is a concealed agreement between the parties to it inconsistent with its terms, securing a benefit to the grantor at the expense of those he owes. A trust thus secretly created, whether so intended or not, is a fraud on creditors, because it places beyond their reach a valuable right, and gives” to the debtor the beneficial enjoyment of what rightfully belongs to them.</p> <p>2. Where the secret trust reserves to the grantor future support, the gist of the objection to the transaction consists, not in the amount to be paid to the grantor on that account, but in the fact that the promise of future support forms part of the consideration as an inducement to the transfer. Where it is shown that the present consideration is inadequate tp satisfy his debts, whatever may be the amount secured to the debtor, the law, instead of endeavoring to determine what part of the consideration is money or other property, and what part is to be paid in future support of the grantor, and holding the grantee responsible for the latter sum, will treat the conveyance as a nullity, as between the grantee and the creditors of the grantor, and hold the property liable for their claims.</p> <p>3. Same—evidence in rebuttal. Evidence is admissible, however, upon the question of fact whether a secret trust really does exist. If the future ' support provided for was a mere gratuity tendered by the grantee, then it would be subject to be revoked at any time, and could not, even as between them, create a trust. But, presumptively, where the future support of the grantor is reserved, it represents