Taylor Universal Motor Co. v. Diener
Taylor Universal Motor Co. v. Diener
Opinion of the Court
It has been repeatedly held that the validity of a gift of property as to existing creditors is not dependent' on the intent to defraud them. Where prejudice results to the interests of existing creditors by reason of a voluntary transfer of the debtor’s property, on which they are entitled to rely for the payment of their claims, such facts constitute sufficient grounds to render o the transfer invalid. In other words, it is" the settled law that a debtor has no ability to make a gift of his property beyond his solvency. This was the pronouncement of Blackstone when he said, “We must be honest before we are generous.”
In the instant case the facts are clearly established that A. B. Diener conveyed the property described in the petition to his
Case-law data current through December 31, 2025. Source: CourtListener bulk data.