Estate of Cousins

Citations

• 111 Cal. 441
• 44 P. 182
• 1896 Cal. LEXIS 604

Syllabus

<p>Guardian and Ward — Settlement of Guardian’s Account—Commingling of Moneys—Interest,—The limit of liability of a guardian for commingling the funds of his ward with his own, and for their use in his own business, where it is not shown that a larger profit was realized therefrom, is the return of the principal with legal interest thereon, compounded annually; and it is error to charge the guardian upon settlement of his account, more than the legal rate of interest, compounded annually, upon the ground that such higher rate is a current conventional rate of interest usually charged on money loaned, in the absence of any showing that he could have loaned the money at such rate, or had been benefited to that extent from his use of the funds.</p> <p>Id. — Loan upon Mortgage Security—Depreciation in Value—Good Faith — Interest.—Where a guardian made a loan of a portion of his ward’s funds upon a mortgage of real and personal property taken in his own name, hut in good faith for the benefit of the ward, and a portion of the loan was lost by depreciation in value of the property, without any finding that the guardian was guilty of negligence, or of facts from which negligence can be inferred, he is, if chargeable at all with the principal of the debt lost by the loan, not chargeable with any interest thereon.</p> <p>Id.—Responsibility of Trustee — Errors of Judgment — Reasonable Care.—Mere error of judgment is not sufficient to subject a trustee to punitive responsibility, nor does the law demand of him extraordinary care, or make him an insurer of the trust property, or liable for losses upon an investment which may occur from depreciation of values, where he has exercised reasonable care, diligence, and business prudence in the form, manner, and securities approved of by rules of equity.</p> <p>Id. — Purchase of Land by Guardian — Disaffirmance by Ward — Compound Interest not Allowed. —Where land upon which the ward resided with his parents was purchased by the guardi