Eaton v. Boston Safe Deposit & Trust Co. - 240 U.S. 427 (1916)
U.S. Supreme Court
Eaton v. Boston Safe Deposit & Trust Co., 240 U.S. 427 (1916)
Eaton v. Boston Safe Deposit & Trust Company
Motion to dismiss or affirm submitted February 28, 1916
Decided March 13, 1916
240 U.S. 427
Trust for life with income to be free from interference or control of creditors of the beneficiary are, in Massachusetts, valid and effective against creditors, and, under certain condition, against assignees in insolvency and trustees in bankruptcy.
The policy of the Bankruptcy Act is to respect state exemptions.
A trust fund established by a will, the whole of the income to be paid during life of the beneficiary with such portion of the principal as shall make the annual amount to be paid at least a stated sum, said income to be free from interference or control of creditors, held, in this case, following the decision of the highest court of Massachusetts, not to pass to the trustee in bankruptcy of the beneficiary under § 70a(5) of the Bankruptcy Act.
The facts, which involve the construction and application of § 70a(5) of the Bankruptcy Act and of the rights of the life tenant in a trust fund created under the laws of Massachusetts, are stated in the opinion.