Burke v. Modern Woodmen of America

COOPER, J.

In March, 1900, R. H. Burke, then a single man, became a member of the local camp of the Modern Woodmen of America, and took a benefit certificate for $2,000, payable on his death to “his legal heirs related to said member in relationship of heirs.” He afterward married the plaintiff, and after such marriage he made a will which contained the following clause: “I hereby expressly give, devise, and bequeath unto my said wife, Alice S. Burke, all sums of money that may be due at my death upon policy No. 621,457, issued by the Modern Woodmen of America, dated March 8,1900, and I hereby authorize her to collect said sum of money therein mentioned.” In October, 1901, the said Burke died with

[612]

out having made any change of beneficiary under said certificate, as required by the rules and by-laws of the said order of Modern Woodmen. His will was duly admitted to probate, and letters of administration with the will annexed issued to one Snitjer. This action was brought to recover the sum of $2,000, the amount of the said benefit certificate. The court found that at the time of the death of Burke he left ten heirs, consisting of the plaintiff, brothers, sisters, nephews and nieces, whose names are stated. Judgment was given to plaintiff for $1,000, being the amount which she would inherit under the laws of succession of the state if the benefit'certificate had been assets of the estate. Defendant appeals from the judgment and from an order denying its motion to set aside and vacate the judgment and to enter in lieu thereof a different judgment.

The trial court correctly held that the attempted change and substitution of plaintiff as beneficiary by the will was not valid, because not made in accordance with the laws of the defendant corporation. The designation of the beneficiaries made by deceased in his lifetime was valid when made, and not having been legally changed by deceased in his lifetime, was valid at his death, and the $2,000 was payable to his legal heirs.

(Sheehan

v.

Butchers’ etc. Assn.,

142 Cal. 489, [76 Pac. 238].) The beneficiaries are entitled to take by virtue of the contract and not by succession. The certificate did not become the assets of the estate by the death of Burke. The defendant made a contract with Burke in his lifetime by which, for certain considerations, it agreed- to pay to certain parties the sum of $2,000 upon the death of Burke. If the names of the ten heirs had been inserted in the contract as the beneficiaries, it would be plain that they would each take an equal one-tenth of the $2,000; but as the class of persons is designated in the certificate, it only remained for the court to determine and find who were the persons constituting the designated class. It did so find. For the purpose of determining who are the heirs of a deceased person, resort is to be had to the laws of the state under which the descent is cast.