
    No. 96
    GOODRICK, Admr. v. SHEETS
    Ohio Appeals, 6th Dist., Wood Co.
    No. 319.
    Decided Dec. 8, 1924
    563. FRAUDULENT CONVEYANCES— Retention of sufficient property to pay existing creditors does not invalidate gift conveyance.
    Published only in Ohio Law Abstract
   RICHARDS, J.

Epitomized Opinion

William Sheets died Oct. 19, 1922. On April 4, 1922 Sheets executed a deed of gift to his wife of 40 acres of land and this action was brought by the administrator on behalf of the creditors to set aside this conveyance. At the time of the conveyance Sheets owned 110 acres of land in Wood county. His debts then amounted to $1700. He was planning to execute a mortgage and borrow that amount, but his wife declined to sign the mortgage unless he would execute to her a deed for 40 acres of the land. By reason of her insistence, he executed the deed for 40 acres, retaining 70 acres of land. The value of the 70 acres at the time of the conveyance was approximately $10,000.

Attorneys—C. L. Foster, for Goodrick; Benjamin F. James, for Sheets; all of Bowling Green.

Shortly after Sheets’ death a partition suit was filed to partition the 70 acres. The land was appraised for $7,150 and sold for $5,185, which was exhausted in the payment of the costs and liens secured by mortgaged and judgments, and dower of the widow. Goodrick’s suit was for' the benefit of unpaid creditors who became such subsequent to the execution of the deed to Mrs. Sheets. The common pleas rendered judgment for the defendant, Cornelia Sheets. The administrator, Goodrick, appealed. In affirming the decree, the court of appeals held:

1. One who is indebted cannot justly make a gift of his property without retaining ample assets to meet his indebtedness, but as the facts in the instant case clearly show that the deceased had ample assets at the time the gift was made, the conveyance could not be set aside as fraudulent.  