Ghormley v. Smith

Citations

• 139 Pa. 584
• 21 A. 135
• 1891 Pa. LEXIS 1026

Syllabus

<p>[To be reported.]</p> <p>1. While it is well established in Pennsylvania that a parent may make a settlement in favor of a child, by way of a spendthrift trust, which will protect both principal and income against the child’s creditors, it has never been held that a person sui juris may settle his entire estate upon himself, free from liability for debts.</p> <p>2. The policy of the law will not permit property to be so limited as to remain in the grantor for life, free from the incidents of property and not subject to his debts; and to this extent the English doctrine seems to have been retained in this state, notwithstanding the departure therefrom in the matter of spendthrift trusts: Mackason’s App., 42 Pa. 330.</p> <p>8. A single woman, not in contemplation of marriage, cannot settle her own property upon trusts, in such a way that she shall receive and enjoy the income thereof during her life, and have a power to dispose of the property by appointment at her death, and yet so that it shall not be subject to liability for her lawful debts.</p> <p>4. At all events, the income reserved to the grantor, in such a settlement, will be liable for her debts, notwithstanding an express limitation to the contrary, and notwithstanding that her power of appointment in remainder is subjected by the deed of settlement to some restrictions, and the settlement is expressly made irrevocable.</p>