Trethewey v. Horton

Citations

• 71 Wash. 402
• 128 P. 632
• 1912 Wash. LEXIS 763

Syllabus

<p>Trusts — Testamentary Trusts — Management op Estate — Abuse op Discretion — Liability op Trustees — Evidence—Suppiciency. Testamentary trustees are shown to have exercised proper judgment in the execution of their trust, and should not be discharged or held to account for increased interest to certain objecting legatees, where it appears that they were expressly directed not to sacrifice the estate, and to hold and sell a particular business block as one property, that the deceased left but $64,000 cash on hand, while repairs and improvements on the business block were under way which would cost $85,000’, besides which there was a charge to pay legacies amounting to oyer $367,000, $220,000 of which with annuities aggregating $3,840 a year, besides taxes etc., that to meet this severe problem they incorporated the estate, the residuary legatees accepting stock in lieu of legacies, which earned less than four per cent, that to insure participation by the class of legatees objecting, they executed the several notes of the company for the sums due them, which drew interest at four per cent per annum, payable monthly; and such per cent is found to be a fair return, when men of financial judgment testified to that effect, considering the circumstances; especially where, for a time at least, payment of such interest was a mere gratuity; and such objecting legatees had no right to have their share of the estate invested in the stock of the company.</p> <p>Same — Discretion—Sale—Obligation of Trustees. In such case, the testamentary trustees did not abuse their discretion in failing to convert into money real estate, the free use, possession, and enjoyment of which was devised to the wife for life, although she had moved away from the property; since the right to make such use of the proceeds during life is doubtful, and this precludes any abuse of discretion.</p>