Fast v. McPherson

Citations

• 98 Ill. 496
• 1881 Ill. LEXIS 282

Syllabus

<p>1. Trusts and trustees—a trust made to defraud creditors, not enforced. A secret trust in real estate, resting upon an agreement made to hinder and delay creditors, will not be enforced.</p> <p>2. A party taking a conveyance of real estate in trust for another from a prior trustee, who, by an instrument in writing, admits his taking in trust, as well as by liis answer to a bill to enforce the trust, will not be allowed to show in defence that the prior trustee held the property under a contract to defraud the creditors of the husband of the cestui que trust. That trust was terminated on the conveyance to the second trustee, and there being nothing on the face of his declaration of the trust having reference to any unlawful purpose, a court of equity will compel him to execute it.</p> <p>3. Same—holder of legal title may admit he holds in trust. It is competent for a party, after the legal title to real estate has been vested in him, to make a written declaration that he holds such title in trust for another.</p> <p>4. Same—chargeable with notice of who is the beneficiary. A party receiving a conveyance of lands without any consideration, executed a declaration of trust, in which the name of the cestui que trust was left blank. He also received money in trust upon checks payable to the cestui que trust, and also money on notes, and the agent of the beneficiary collected all the rents of the real estate: Held, that these facts were sufficient notice to the trustee of the person who was the beneficiary.</p> <p>5. Same—held to notice of what circumstances show. Where a person accepts the position of trustee, he must know that the same requires care, circumspection and fidelity, and he will not be heard to say he did not know that which he could have known by the exercise of ordinary diligence. That which is sufficient to put him on inquiry, is notice of what such inquiry would have developed.</p> <p>6. Same—agent can not release. An agent of a cestui que trust has no