Gourley's Estate

Citations

• 238 Pa. 62
• 85 A. 999
• 1913 Pa. LEXIS 923

Syllabus

<p>Will — Bequest of personalty — Power to consume — Trust and trustees — Active trust — Survivorship—Failure of charitable bequest.</p> <p>1. Testator directed a sale of his real and personal property and provided that the fund therefrom should be placed in a bank at interest for the maintenance and support of his two sisters. He also provided that “should interest not provide for their maintenance and support, the principal is to be drawn on.” A person named was to act as trustee of this fund. He further provided that at the death of either of his sisters the “balance of money in bank be held for survivor to be used for her support.” At the death of both sisters the balance of moneys was to be paid to a charity named. Ttestator died within thirty days of the execution of his will, and the remainder to the charity failed. Held, that the fund was not payable immediately to the sisters, but should be held by the trustee for the purposes named in the will.</p> <p>2. In such a ease the trust is an active one, and it did not fail because it became inoperative to protect the remainderman; nor does the failure of a charitable bequest and the resulting intestacy advance the time for distribution.</p> <p>3. 'Wherever it is necessary for the accomplishment of any object of the creator of a trust that the legal estate should remain in the trustee, then the trust is a special active one.</p> <p>4. The rule that a bequest of personalty with power to consume is presumed to be an absolute gift, is not a rule of law but a rule of construction only, in aid of discovery of the testator’s intention.</p>