In re Assigned Estate of Clemens

Citations

• 175 Pa. 110
• 34 A. 622
• 1896 Pa. LEXIS 1216

Syllabus

<p>Trusts and trustees — Mortgage—Payment.</p> <p>A trustee under a spendthrift trust invested a portion of the trust funds in a mortgage upon real estate owned by the cestui que trust. The cestui que trust, who was a woman, subsequently made an assignment for the benefit of creditors. It appeared that the income of the trust estate was paid to the cestui que trust with the interest money charged against her; that of this and of the nonpayment of interest by the assignee she had full knowledge; that she was not ignorant of business matters and had had large experience as to banking and commercial transactions; that she scrutinized the accounts of her trustee and knew every item charged against her, and that she acquiesced in the interest being charged against her in the trustee’s account. Held, that the trustee could not claim any interest on the mortgage out of the cestui que trust’s assigned estate.</p>