Hepburn v. Spotts

Citations

• 168 Pa. 346
• 31 A. 1083
• 1895 Pa. LEXIS 801

Syllabus

<p>Trusts and trustees — Fraud—Insolvency of trustee.</p> <p>A. made a will which contained a schedule of the valuation of his real estate, and directed that his daughter C. should, after his decease, select $25,000 worth of said real estate, according to the valuation set out in the will.</p> <p>The real estate thus selected was devised to her to possess, occupy and control during life, in trust for her children, and in case of her death without children then to his heirs at law at the time of her death. After paying necessary expenses and repairs, and affording such proper support for herself and family as she might deem necessary, she was given power to invest whatever income might remain in the real property or interest-bearing securities for the use and benefit of the trust. She was also given power to sell and convey in fee simple any portion of the real estate, and reinvest the proceeds of such sale in other real estate and interest-bearing securities. In accordance with the provisions of the will C. selected portions of the testator’s real estate of the value of $25,000.</p> <p>Among the properties thus selected was a brick yard, where C. carried on the business of brickmaking, and incurred debts in this business and in the improvement of the trust property. O. died largely indebted and her estate was insolvent. The plaintiffs were creditors of C. and, failing to obtain payment in full of their indebtedness out of the estate of C., filed their bill against the administrators and children of C., and sought to hold the trust estate liable for the payment of the balance of their indebtedness due from C. The bill averred that the estate of C. was made insolvent by the use of plaintiffs’ money in the improvement of the trust estate, and that their claims were for work done, materials furnished and money expended in making improvements and betterments to said estate, by which the value of the property was largely enhanced, the enhancement exceeding the proceeds of