Scott v. Keane

Citations

• 87 Md. 709
• 42 L.R.A. 359

Syllabus

<p>Fraudulent Conveyances—Rights of Subsequent Creditors— Voluntary Settlement of Property Reserving Control to Settlor.</p> <p>A voluntary deed may be avoided by subsequent creditors of the grantor in some cases where no actual fraud is proved to have existed, but where the provisions of the deed itself are fraudulent in law.</p> <p>When the owner of property makes a voluntary settlement of the same' reserving a life interest to himself with remainder to others, but it is also provided that he may revoke the settlement by a sale of the property for his own benefit, or by devise, such settlement is void as against subsequent creditors, for it leaves the property under the control of the settlor.</p> <p>S., the owner of property, conveyed the same to a third party, who im - mediately reconveyed it to the grantor in trust for S. for life to retain possession and receive the rents, etc., without impeachment of waste, and after his death for the benefit of his daughters. The deed further provided that S. should have power to mortgage, lease or sell the land or any part thereof, without any obligation on the part of the purchasers to see to the application of the purchase money, and that he should also have power to devise the land by last will. Held, that this deed was void as to subsequent creditors of S. whether they had notice of the same or not.</p>