Streater's Estate

Citations

• 250 Pa. 328
• 95 A. 459
• 1915 Pa. LEXIS 945

Syllabus

<p>Wills — Testamentary trustee — Bale of securities — Application of purchase-money.</p> <p>1. A trustee may generally sell the personal property belonging to his trust.estate, especially if he have authority to change the securities or vary the investments, and if he sells the personal property to a purchaser who pays the purchase-money in good faith, the purchaser will take good title, although he knows of the trust and although the trustee afterwards misapplies the money.</p> <p>2. Testator by will gave the residue of his estate after the death of his wife, in trust, for certain purposes. Among the assets of the estate which passed to a substituted trustee was certain bank stock, an investment made by the testator himself. A new certificate was issued in the name of the substituted trustee. The trustee sold the stock for full value to appellant, and embezzled the money. Held, that the trustee had power to make the sale, and that the purchaser was not responsible for the trustee’s subsequent fraudulent conduct.</p>