Hahn v. Hutchinson

Citations

• 159 Pa. 133
• 28 A. 167
• 1893 Pa. LEXIS 1487

Syllabus

<p>Trusts and trustees — Spendthrift trust — Will.</p> <p>There can be no valid spendthrift trust where the trustee is also the cestui que trust, with the absolute ownership of the subject of the trust, whether income or principal.</p> <p>Testatrix by her will directed as follows: “For the purpose of carrying out this my will, I give, devise and bequeath to my husband my entire estate, real, personal and mixed, in trust, he to have the entire control, so long as he may desire, of the same, and,use so much of the income thereof as he may desire.” Then followed a provision that the income should not be liable for any of his debts, present or future. She further directed that her husband should 'have unrestricted control of the entire trust estate, and should not at any time be required to render an account. He was empowered to improve, sell, or incumber the real estate, “ with the same effect as if he were the owner,” except that in making deeds or mortgages he must execute them as trustee. He was also empowered to make a last will and testament, and thereby “to alter, vaiy or change the amounts coming to ” the children, under the will of testatrix, and “to designate the property and make a division of the same as he may deem best, and such division shall be binding and conclusive on all parties affected thereby.” Held, (1) that the husband took an absolute and uncontrolled ownership of all the income of the entire property during his life; (2) that no valid spendthrift trust was created in the income, and that it was liable to be sequestered for the husband’s debts.</p>