Trust of Munro v. Commonwealth National Bank

CAVANAUGH, Judge:

The issue before us in whether the court below properly refused to surcharge a corporate trustee for retaining its own stock as principal of the trust.

By Deed of Trust dated July 29, 1932, Joseph Munro and Isabella W. Munro, his sister, placed designated assets in trust, including shares of stock in Carlisle Deposit Bank and Trust Company which was named as sole Trustee. The trust agreement stated, inter alia that the Trustee was:

to hold all stock of the Carlisle Deposit Bank and Trust Company which may come into hands of trustee under this agreement and pay the net income…