In re Upson

Citations

• 123 F. 807
• 1903 U.S. Dist. LEXIS 253

Syllabus

<p>1. Bankruptcy—Validity op Trust in Favor op Daughter.</p> <p>A father advanced a sum of money for the purchase of a lot and the building thereon of a home for his daughter and her husband, under an agreement that the husband, who took title to the lot in his own name, should convey the same to his wife. Such conveyance was not made, however, during the lifetime of the wife, who died leaving an infant daughter. It was then agreed between the grandfather and father of the child that the father should sell the property, and from the proceeds reserve the amount of the advancement, and hold the same in trust for the child, to be paid to her, with interest, when she reached the age of 21, and this agreement was carried out, the father receiving the money and executing his note therefor, with interest payable to himself as guardian for his daughter, which note he held. There were no creditors whose interests were affected, and the trust was at all times recognized by the father, and by the grandfather in making his will, by which he treated his granddaughter as having received the advancement made to her mother, and made a further bequest for her benefit to her father as trustee. Held, that a valid trust was created in favor of the daughter, although her father was not her legal guardian, and that on his bankruptcy she was entitled to share with other creditors in his estate.</p>