Remensnyder's Estate

Citations

• 267 Pa. 348
• 110 A. 244
• 1920 Pa. LEXIS 861

Syllabus

<p>Trusts and trustees — Will—Active trust — Termination of — Gift of bank stock — Option to purchase stock held in trust — Restraint on alienation — Public policy — Vesting of title — Condition precedent.</p> <p>1. An option is a species of property that can he made the subject of a testamentary gift.</p> <p>2. Where a testator gives to a daughter bank stock, and directs that it “shall be held in trust for her as hereinafter provided,” he creates an active trust in such stock by a later direction in his will, that a friend, whom he names, shall, “in consideration of many kindnesses and favors shown” to the testator in his lifetime “have the first option to purchase” such stock, and that before the daughter shall sell, or otherwise dispose of said stock, ghe shall give written notice to the trustee of her desire so to do, and the trustee shall offer to sell it to the friend named, at its book value, .and if the said offer is not accepted and purchase made within thirty days, then the trustee shall deliver over said stock to the legatee absolutely, and she shall have full power to sell or otherwise dispose of it.</p> <p>3. The above testamentary provision is not a restraint on alienation, in violation of public policy, but a condition precedent to the absolute vesting of the title.</p>