Krause v. Attorney General

The question for decision is whether the trustees of a testamentary charitable trust may purchase, pursuant to instructions in the trust instrument, trust assets at a profit. The facts are largely undisputed.

*158Otto Krause died on May 27, 1950, leaving a will drawn and executed in 1948. Paragraph IV of the will established the “Community Service Trust,” the corpus of which consisted of 3,200 shares of the testator’s holdings of capital stock of Wolverine Shoe & Tanning Corporation, now Wolverine World Wide, Inc. Subsequent stock splits and stock dividends increased the corpus of the trust to…