Kinzer v. Stephens

96 N.W. 858, 121 Iowa 347
Supreme Court of Iowa·Decided October 16, 1903·Published·Cited by 5 cases

Opinion

Deemer, J.

'The case involves a construction of section 2985 of the Code, which reads as follows: “Upon the death of either husband or wife the survivor may continue to possess and occupy the whole homestead until it is otherwise disposed of according to law * * * but if there be no survivor, the homestead descends to the issue of either husband or wife according to the rules of descent, * * * and it is to be held by such issue exempt from any antecedent debts of their parents or their own, except those of the owner thereof contracted prior to the acquisition.” Under this section we have held that the legal title of the homestead upon the death of the owner descends to the heirs of such owner, subject to a right, of occupancy in-the surviving husband orwife (Burns v. Keas, 21 Iowa, 257), and that the heirs hold the homestead free from the debts of their ancestor, and also hold it exempt from their own debts contracted before the death of their ancestor, even though they do not take possession of and occupy the homestead (Kite v. Kite, 79 Iowa, 491.) The exemption is not because-of any right the heirs have in the property, but because of the homestead right of their ancestor; hence occupancy by the heirs is not essential to the exemption. Johnson v. Gaylord, 41 Iowa, 362; Baker v. Jamison, 73 Iowa, 698. From this it fpllows that even a nonresident heir is entitled to hold his share exempt from his debts. Maguire v. Kennedy, 91 Iowa, 272.

Geo. W. Stephens owned a homestead at.the time of his death, which occurred May 10, 1384. He ltfc surviving his widow, Hannah, and six children, one of whom is defendant W. W. Stephens. The widow continued to occupy the homestead'until her death on June 16, 1901. Both George W. and Hannah Stephens died intes[349] tate. Kinzer recovered bis judgment against W. W. Stephens October 1, 1888, but it does not appear when the «debt on which judgment was obtained was contracted. On the 23d of November, 1901, the surviving heirs of ¡George W. and Hannah Stephens sold the homestead to garnishee Frank Pugh, and the money sought to be sequestered in this case is that part of the purchase price belonging to defendant Wm. W. Stephens. The trial court rendered judgment against the garnishee, holding-that the proceeds from the sale of the homestead were not exempt in the hands of the heirs or their vendees. Defendant Wm. W. Stephens has never occupied the premises, and makes no claim to the proceeds thereof because the property was his homestead. Nor does it appear that this defendant was intending to change homesteads by investing the proceeds of the one inherited from his ancestor in another. The sole question in the case, then, is, are the proceeds of such a homestead as we have described exempt from the debts of an heir?

It is fundamental that, in the absence of statute, proceeds of exempt property, resulting from a voluntary sale thereof, are not exempt. And ik Is just as well .-settled that such proceeds from £«> 'involuntary sale, damages to the property growing oat of a tort, or the resultant ■of other involuntary substitution of non-exempt for exempt property, is exempt, at least for a reasonable length of time. Friedlander v. Mahoney, 31 Iowa, 311; Harrier v. Fassett, 56 Iowa, 264; Thompson on Homesteads & Exemptions, sections 745, 746; Kaiser v. Seaton, 62 Iowa, 463; Mudge v. Lanning, 68 Iowa, 641; Blum v. Light, 81 Tex. 414 (16 S. W. Rep. 1090); Reynolds v. Haines, 83 Iowa, 342; First Nat. Bank of What Cheer v. Willie, 115 Iowa, 77; Haskins v. Hanlon, 72 Iowa, 37; Kirby v. Giddings, 75 Tex. 679 (13 S. W. Rep. 27). To meet this situation,., several states have provided for the exemption of the pro-. ceeds of a voluntary sale pf exempt property. .See statute [350] cited in Watson v. Saxer, 102 Ill. 585; Hewitt v. Campbell 54 Wis. 583 (12 N. W. Rep. 45). We have no such statute;: hence -the general rule obtains, and, as the sale in this case was voluntary, the proceeds are not exempt. With the policy of the law we have nothing to do. It may be that under this construction the homestead acquired by descent from an ancestor is of no great value to an heir who is so* unfortunate as to be in debt when he acquires his right, thereto, and that the legislature should provide for an exemption of the proceeds for a reasonable length of time, or for certain purposes; but it is not our province to euro hardships, real or'apparent, in the law. as it is written»Appellants’ counsel rely on Reynolds v. Haines, 83 Iowa, 342; Kaiser v. Seaton, 62 Iowa, 463; First Nat. Bank of What Cheer v. Willie, 115 Iowa, 77. None of these cases-are in point. In Reynolds' Case the question involved was the right to the avails of insurance upon exempt personal property. There was no voluntary disposition of the property in that case. The money due on the policy stood' in place of the property destroyed and was acquired in invitum. In the Kaiser Case, the money was the proceeds of a railway right of way through the homestead acquired by condemnation proceedings, which were also in invitum. ” We expressly said in that case, “Whether the proceeds of a voluntary conveyance by the husband would be exempt, we do not determine.” The case was made to turn expressly on the thought that the right of way was compulsorily taken. The question here presented was not involved in the What Cheer Bank Case, and the language-used in argument must be construed with reference to the-facts recited in the opinion. It does not appear whether the sale in that case was voluntary or involuntary. The-inference is that it was involuntary, for the proceeds were-in the hands of the executor of the ancestor’s estate. At-any rate, the funds were held not exempt. In Kite Kite, 79 Iowa, 491, also relied upon by appellants, the-[351] ■proceeds were the' result of a partition sale which was ■also in invitum, Moreover, the exact question here presented was not involved in that case.

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Kinzer v. Stephens, 96 N.W. 858, 121 Iowa 347 (iowa 1903).

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