Livingston v. Shelton

The issue herein is whether the surviving spouse is subrogated to the position of a secured creditor of her husband’s estate by reason of the assignment by her of all her interest in three insurance policies to a creditor-bank, as collateral for a loan made to the marital community. We answer in the negative, reversing the Court of Appeals and reinstating the judgment of dismissal by the trial court against the widow, who was plaintiff in the trial court.

The Livingstons obtained substantial loans from the Bank of Yakima to finance their farming and related business operations in and around…