Reference

Full Case Name

Pensyl's Appeal. [Pensyl's Estate.]

Cited By

2 cases

Status

Published

Syllabus

A testatrix, by her will, directed her executor to put her money at interest, or in bank stock, or in any way most beneficial to her children. The testatrix’s entire estate consisted of some $600 loaned to the executor. Before the death of the testatrix, efforts had been made to establish a bank in the neighborhood, and the testatrix had declared that she desired that her money should be invested in its stock. After her death, the bank was established and the executor subscribed for stock to the amount of $1,000, subject further to the liability of an assessment in favor of creditors to the full par value of the stock. Fifty per cent, of the par value was payable immediately and was paid by the executor, who gave his individual note for payment of balance on subscription of stock, if required by any future assessment. The stock was made out in the individual name of the executor and inclosed in an envelope by the cashier of the bank, and put aside in the bank in a pigeon-hole, where it remained until the executor was ready to prepare his account in this case. The dividends were deposited to the executor’s account as executor, but were afterwards used to pay an assessment on the stock. Before the account was filed, the bank became insolvent. The executor maintained that the stock was subscribed for as an investment for the trust estate, and accordingly claimed credit therefor in his account, to which exception wastaken. The auditor found, from parol evidence submitted, that the stock was subscribed for and held on account of the estate. The court below refused to decree a surcharge of the executor with the loss on the stock. Held, that the decree should be affirmed.