Legg v. St. John

Mr. Justice Brandéis

delivered the opinion of the Court.

The question for decision is whether the bankrupt or his trustee is the person entitled to future monthly disability benefits payable under a contract entered into- before the adjudication.

On March 8, 1934, Legg, a resident of Tennessee, was, on his petition, adjudged a bankrupt. He then held a policy in the Metropolitan Life Insurance Company by which it agreed, in consideration of an annual premium of $425.83, to pay upon his death either $24,000 in 240 monthly installments or the single sum of $17,452, as commuted value. By a…