Mutual Benefit Life C. Co. v. Wilson

6 S.E.2d 716, 189 Ga. 344, 1939 Ga. LEXIS 727
CourtSupreme Court of Georgia
DecidedNovember 29, 1939
Docket12967.
StatusPublished

This text of 6 S.E.2d 716 (Mutual Benefit Life C. Co. v. Wilson) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mutual Benefit Life C. Co. v. Wilson, 6 S.E.2d 716, 189 Ga. 344, 1939 Ga. LEXIS 727 (Ga. 1939).

Opinion

The caption of the act approved August 17, 1920 (Ga. L. 1920, p. 245), now embodied in the Code, §§ 113-1721, 113-1722, 113-1723, is: "An act to authorize executors, administrators, and trustees, where there is not sufficient personal property to pay the debts of any estate, to sell, for the purpose of paying such debts, land *Page 345 left by will providing that said land be kept together until the beneficiaries thereunder reach the age of twenty-one years and providing that said land can not be sold until the happening of some contingency which rotates [relates] to the future; to provide for the passing of the title of the land so sold; to prescribe the mode, method, and procedure necessary in case of such sale, and to provide that in all other respects than as set out in this act such sale shall be made as provided in sections 3064 and 3065 of the Code of Georgia; and for other purposes." In the act it is declared "that from and after the passage of this act it shall be lawful, in all cases where property is left by will heretofore, as [or] hereafter made, providing for the keeping together and holding the real estate named in such will until the beneficiaries under such will shall arrive at the age of twenty-one years," the real estate may be sold in stated circumstances for payment of debts. "Provided, however, that before any such sale shall be finally consummated, such executor, administrator, or trustee shall file in the office of the clerk of the superior court . . a petition in writing addressed to the judge of the superior court, . . setting forth" specified details of the transaction. Also, that all such sales "shall be made" as provided for sales for re-investment by guardian, and "to be approved and confirmed by said judge by appropriate order; and the entire proceedings shall be recorded on the minutes of the superior court, and properly indexed." In the instant case the will in question is the same as that involved in Refinance Corporation of Georgia v. Wilson, 183 Ga. 336 (188 S.E. 707). Held:

1. The above statute does not provide a cumulative, but, on the contrary, the exclusive method by which executors, administrators, and trustees may obtain authority to sell land for the payment of debts when such land is by will devised with the requirement that said land be kept together until the beneficiaries thereunder reach the age of twenty-one years.

2. When said act applies, a sale by virtue of an order of the court of ordinary, granted under the Code, § 113-1706, does not divest the title of the devisees.

3. That the will in the instant case was executed and probated before the enactment of the act above referred to is no reason why its provisions are inapplicable in the instant case; the application to and the order of the ordinary, and the sale thereunder, having taken place since the date of the approval of the act.

4. The amendment objected to was properly allowed.

5. Under the record, the foregoing rulings are decisive of the case. The petition stated a cause of action.

Judgment affirmed. All the Justicesconcur.

No. 12967. NOVEMBER 29, 1939.
William L. Wilson and others, the children and a child of a deceased child of W. L. Wilson, deceased, brought suit against Mrs. Alice C. Wilson, his widow, and the Mutual Benefit Life Insurance *Page 346 Company, alleging as follows: W. L. Wilson, a resident of Montgomery County, Georgia, died testate on August 8, 1917. His will was probated in solemn form, and a copy thereof is set forth. Plaintiff William L. Wilson was born on August 18, 1917, a short time after the death of his father, W. L. Wilson, who at the time of his death owned, among other property, the land described in the petition. His son Richard C. Wilson became of age in 1929, and qualified as executor of the will, and was executor from 1929 until his death on January 5, 1935. As executor he applied to the court of ordinary of Montgomery County for leave to sell the land here involved, for the alleged purpose of paying debts, and at the June term, 1929, of that court an order granting leave to sell was entered. On July 2, 1929, after advertising, he offered the land for sale and purported to knock it off to Mrs. Alice C. Wilson for $8500. Pursuant to said sale he executed and caused to be recorded a deed purporting to convey said land to her. A copy of the deed is exhibited. This deed was never delivered to and accepted by Mrs. Wilson, but was held by Richard C. Wilson and kept among his individual papers until his death. On September 14, 1929, Mrs. Wilson executed and delivered to the Mutual Benefit Life Insurance Company a deed to secure an indebtedness of $3200, a copy of which deed is set forth. The deed from Richard C. Wilson to Mrs. Alice C. Wilson is void, for the reason that it was part of a scheme between them to divest petitioners of their remainder interest in said land, and of their right to support and maintenance from the rents thereof, as provided by the will of W. L. Wilson, all of which was known to the insurance company, at the time it made the loan and accepted the security deed from Mrs. Wilson. The will of W. L. Wilson provided that all his debts be paid from his insurance money, and they had been paid in full long before the application to sell was filed; and this was known or could have been known by the Mutual Benefit Life Insurance Company at the time it accepted the loan deed from Mrs. Wilson, had its attorneys and agents making the abstract and negotiating the loan used ordinary diligence and made inquiry about payment of the debts of said estate. The order of the ordinary granting leave to sell is void, because of the fraudulent representations made to the ordinary by Richard C. Wilson, to the effect that there were debts of the estate, there being in fact no debts. The will provided that the debts be paid out of the *Page 347 insurance money, and required the estate to be kept together until August 18, 1938, when the youngest child, William L. Wilson, reached his majority.

It was alleged that the deed from the executor to Mrs. Wilson was void, for the following reasons: (a) By the terms of the will Richard C. Wilson and Mrs. Wilson were made cotrustees. (b) The conveyance by the executor to Mrs. Wilson was an effort to put the title in her, so as to divest the remainder interests of petitioners in the land, which fact was known to the officers and agents of the insurance company and could have been known by the exercise of ordinary diligence. (c) Such purpose was known by the attorneys and agents of the company at the time it made the loan and accepted the security deed. (d) The will limited the use of the rents and profits from the land to the support and maintenance of petitioners alone. (e) The sale and purchase was a transaction between trustees of the same property; no part of the consideration named in the deed from the executor to his mother was paid, and the estate received no benefit from the purchase; all of which was known to the defendant company at the time it accepted the loan deed; petitioners received no part of the consideration named in the deed from the executor to Mrs. Wilson, received no benefit from the sale, and have done nothing to authorize or ratify the sale; the proceeds of the loan made by the insurance company were used by Richard C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Refinance Corp. v. Wilson
188 S.E. 707 (Supreme Court of Georgia, 1936)

Cite This Page — Counsel Stack

Bluebook (online)
6 S.E.2d 716, 189 Ga. 344, 1939 Ga. LEXIS 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mutual-benefit-life-c-co-v-wilson-ga-1939.