New York Life Ins. v. Neal

Citations

• 114 La. 652
• 38 So. 485
• 1905 La. LEXIS 521

Syllabus

<p>DONATION OF MOVABLES — LIFE INSURANCE POLICY — BENEFICIARIES—VESTED BIGHTS.</p> <p>1. The article of the Code which limits the donation of movables to one-tenth part of the value of the estate of the donor (Civ. Code, art. 1481) must be read in connection with article 12 of the same Code, which provides that “whatever is done in violation of a prohibitory law is void, although the nullity be not formally directed.” Furthermore, “every disposition in favor of a person incapable of receiving, shall be null.”</p> <p>2. Under the first article, to the extent of nine-tenths, the person designated in the policy as the beneficiary was incapable of receiving. By special provision of the article, she is entitled to one-tenth of the personal property of the insured.</p> <p>3. The gratuity, as relates to nine-tenths_, is prohibited in any form — whether as a donation, gratuitous stipulation pour autrui, or in form of an insurance policy.</p> <p>4. The insured had no property, the premium paid being about all he had, to the extent the record discloses.</p> <p>5. The facts and circumstances show that he (insured) had not abandoned all interest in the policy. The beneficiary named could not, to the extent of nine-tenths, acquire a vested right in the policy. The insured bound himself for 20 years to pay premiums annually. His children had been left without support. The proceeds, to the extent before mentioned, fall to the heirs, under the terms of the policy.</p> <p>6. To the extent of one-tenth, there was an insurable interest, to which the defendant is entitled.</p> <p>Provosty, X, dissenting.</p> <p>(Syllabus by the Court.)</p>