Willis v. Braucher

Citations

• 79 Ohio St. (N.S.) 290

Syllabus

<p>Testator in will gives executor and trustee — Power to sell personal estate — And reinvest proceeds — Trustee invests in bank stock— In good faith and zvith proper care — Trustee not personally liable for loss — If stock becomes valueless — Scope and interpretation of section 6413, Revised Statutes.</p> <p>1. The provision of a will by which the testator gives to his executor and trustee and his successors in the trust, whenever in his or their judgment the interests of the estate shall demand, power to sell at private sale or' otherwise, all or any part of his personal estate in such manner and upon such terms as may be deemed best and deliver for any or all real estate sold deeds acknowledged by him or them, and reinvest the proceeds arising from any such sales in such manner as he or they may think best, to dispose of any property real or personal so acquired and reinvest the proceeds in the same manner, serves to extend the scope of the statute (section 6413, Revised Statutes), governing investments by trustees, and relieves the trustee from the requirements of said section.</p> <p>2. Where, in such case, the funds of the estate required to be invested in order to produce income are invested by the trustee in the stock of a state bank at current market rates, and the trustee, in making such investment, uses discretion and care in ascertaining the value ofathe stock, and with the honest belief exercised in the utmost good faith that the bank is sound and the stock a good investment, acting in that behalf on the advice of business men of sound judgment, having means of knowing the market value of the stock, including the judge of the probate court, and upon the counsel of a reputable attorney who advises that the terms of the will are broad enough to authorize the trustee to make such investment, and a loss occurs by reason of a'failure of the bank, the trustee cannot be held personally liable therefor.</p>