Gardiner v. Rauch

The judgment debtor was the beneficiary of her deceased husband’s life-insurance policies. The courts have repeatedly rejected efforts by the creditor to reach the income of the proceeds. (Grossman Co. v. Rauch, 263 N. Y. 264; Matter of Crossman Co. v. Rauch, 248 App. Div. 758, leave to appeal denied, 248 App. Div. 885, 272 N. Y. 676.) The income as well as the proceeds have been held exempt.

The debtor, without other funds or income, purchased an annuity policy providing for payment of the principal to her brother in the event of her death prior to the date of the commencement of the annuity…