Freas's Estate

Citations

• 231 Pa. 256
• 79 A. 513
• 1911 Pa. LEXIS 825

Syllabus

<p>Trusts and trustees — Title to trust property — Title in trustee’s name— Option to cestui que trust.</p> <p>1. Where a trustee takes title to trust property in his own name as an individual, the cestui que trust has the option to accept the investment or require the trustee to account for the purchase money with interest.</p> <p>2. The rule is applicable to a trust company which takes title to trust property in the name of its president, and permits the latter’s declaration of trust to remain unrecorded for four years.</p> <p>3. In such case where it appears that the trustee originally invested the trust money in a mortgage, and that thereafter it was compelled to buy in the mortgaged premises at a loss, the mere fact that title is taken in the president’s name will not make the trustee liable for the loss, or for delinquent taxes, liens and costs which had accrued prior to or as a consequence of the sale, in the absence of any evidence that the loss was due to the negligence of the trustee.</p>