208 Pa. 346 | Pa. | 1904
Opinion by
There is no merit in any of the numerous assignments of error. ' Many of them are to findings of fact by the auditor
The substance of the thirteenth and fourteenth assignments is that the court erred in not awarding the proceeds of the sale of the farm directly to the children of the life tenant. By the will of the testatrix her nephew was given the right to occupy the farm, mansion, and farm buildings, “ so long as he should continue to cultivate the same according to the rules of good husbandry and keep the place in good order and repair,” etc. The auditor has found that all these conditions were performed until the sale of the farm under the Price Act. The life tenant did not lose his estate by the conversion. The sale was made in the interest of all the parties and could have been made against his protest. The proceeds of the sale were received by the trustee in lieu of the land and upon the same trust, for him for life with remainder to his children who should then be living. The act expressly provides that the purchase money shall be in all respects “ a substitute for the real estate sold, mortgaged or let, as regards the enjoyment and ownership thereof, after the payment of the liens, and shall be held for or applied to the use and benefit of the same persons and for the same estates and interest, present or future, vested, contingent, or ex-ecutory, as the real estate sold, mortgaged or let had been held.”
The sixth assignment of error to the refusal of the court to surcharge the trustee with loss sustained by the payment of premiums on municipal and other bonds purchased, has nothing on which to rest because there was no evidence that any loss had been sustained. It has been argued on the ground that premiums paid for investments should be charged to the life tenant generally, and that in this case the direction contained in the will that all taxes, charges and assessments on the real estate should be paid by the life tenant indicated an intent that the life estate should bear the burden of preserving the estate in remainder without diminution. There is nothing that takes the case out of the general rule.
That premiums paid on investments are to be charged to principal and not to income was decided by the orphans’ court of Philadelphia in Furness’s Estate, 12 Phila. 130, nearly thirty years ago and has since been the rule in that court, and as far as we know the rule followed generally in the state. It was recently approved after careful consideration by the Superior Court in Boyer v. Chauncey, 12 Pa. Superior Ct. 526. On the whole we think this is the better rule. It apportions more equitably than any other the charges which each interest in the estate should bear for the preservation of the principal, and jt prevents the positive injustice of charging the life tenant for a loss which may never be incurred. As to the chances of loss or gain it places an investment for which a premium is paid on the same footing as other investments. This is not unjust to the remainderman whose interest is mainly served in securing-the principal, and the cost to him is small, in a properly administered trust. In the case of mismanagement by the improvident purchase of long term loans at high premiums to avoid care and responsibility on the part of the trustee, the remedy is against him.
The decree is affirmed at the cost of the appellant.