208 Pa. 342 | Pa. | 1904
Opinion by
The accountant, a trustee, sold the real estate of the decedent under proceedings under the act of April 18, 1853, and paid the collateral inheritance tax out of the proceeds of the sale. Of this tax $3,156.73 was assessed on the value of the
The sale of the real estate was made in the interest of all parties concerned, and the payment of the whole tax by the trustee became necessary in order to discharge its lien, but we 'see no ground on which the whole of the tax could be deducted from the principal. Each estate, that for life and that in remainder, was liable for its proportionate part of the tax, and the allowance of the credit claimed would have thrown the whole burden on the remaindermen. If there had not been a sale, a tax could have been assessed and levied on the life tenant’s interest. The remaindermen would not have been obliged to pay until the falling in of the life estate. That a contingency arose requiring the payment of the whole tax did not affect the rights of the parties.
The duty of a trustee is to preserve the estate and that duty is not fully performed until the time for distribution is reached or the trustee’s relation to the estate ends. The rule therefore is that commissions on the principal of a trust estate will not be allowed except when the fund is in course of distribution. While this rule is of general application, it is not a fixed and unvarying one and will be departed from as in Thouron’s Estate, 182 Pa. 126, where the circumstances are unusual, the trust of long duration, and when the fund has been largely increased by the skilful management of the trustee. The rule, however, is such a salutary one that it should be departed from only in exceptional cases. In this case the duties of the trustee have been of such an unusual character that -the reason for the rule does not apply. The decedent died in 1865, leaving a' farm estimated as worth $25,000 and no personal estate that
The debree of the court sustaining the exception to the allowance of commissions is reversed, and the auditor’s report is affirmed at the cost of the appellee.