Trustees foreclosed mortgages in which they had invested trust funds and which were in default. Sale of the land brought less than the principal and interest of the mortgages. Beneficiaries of the trust sued for an accounting to determine the respective rights of life tenant and remaindermen to the proceeds of the sale. Held, the net proceeds were to be apportioned between life tenant and remaindermen. To be treated as principal was a sum which, if invested at the rate of interest current for trust investments, would have produced during the period from default till final sale an income which with principal sum would equal the net proceeds of the sale. Regular carrying charges which had been paid out of trust principal were to be repaid in full before apportionment. But the life tenant was to receive interest at the current rate on such advances. In re Nirdlinger's Estate, 327 Pa. St. 160, 193 A. 33 (1937).
Gerald M. Stevens,
TRUSTS - FORECLOSURE OF MORTGAGE HELD BY TRUSTEE - DISPOSITION OF PROCEEDS OF SALE,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol36/iss2/20