In re the Estate of Grunhut

Wingate, S.

The objections of the life tenant to the accounts of the resigning trustee are typical of the vast majority which beneficiaries raise in the unfortunately multitudinous cases where the trust fund was invested in guaranteed mortgages, and has encountered difficulties during the period since 1929.

Popular impression to the contrary notwithstanding, a guaranty of a mortgage has never added to the legality of this type of investment. The legal requirements respecting investments in this type of security are specified in section 111 of the Decedent Estate Law, and the presence or absence…