Young v. Weed

Citations

• 154 Pa. 316
• 26 A. 420
• 1893 Pa. LEXIS 885

Syllabus

<p>Trust to carry on business — Confession of judgment — Conveyance after insolvency — Consideration—Notice—Waiver of statute of limitation.</p> <p>Testator gave all of Ms property to a trustee and directed that ‘ ‘ he shall possess, hold and manage the same, and conduct and carry on business and trade, barter, buy and sell in and for all things that may pertain to said estate its business or its products, and make such investments of the property, real, personal and mixed as he may deem best for the interests of the trust hereby created, and if he shall at any time deem it advisable or for the benefit of the trust hereby created that the said property hereby devised should be sold or any part of it, then I do hereby authorize and empower him to sell the same and make a title to the purchaser in fee simple, and with the proceeds' of such sale I do authorize and empower the said Mills Weed to make such other investments real and personal, or commence, conduct and carry on such other business for the benefit of the cestui que trusts, hereinafter mentioned, as he may deem most advantageous.” The trustee assumed the trust and continued the business of testator, until both the trustee himself and the trust estate became insolvent. After the insolvency he confessed judgment as trustee, and conveyed certain real estate belonging to the trust estate to certain of the creditors whose lien on testator’s real estate had expired without revival. These creditors had knowledge of the insolvency, and the deed to them recited the terms of the will. Held:</p> <p>(1) That as the lien of the debts had been lost, there was no consideration to support the deed or the confession of judgment.</p> <p>(2) That as the estate was insolvent and the rights of other creditors had intervened, the trustee had no right to waive the operation of the statute and thus restore the lien.</p> <p>(3) That the trustee after the insolvency had ño right to prefer one creditor of the trust estate before anoth