Boyle's Estate

67 Pa. Super. 381, 1917 Pa. Super. LEXIS 411
Superior Court of Pennsylvania·Decided July 13, 1917·No. Appeal, No. 170·Published·Cited by 3 cases

Opinion

Opinion by

Trexler, J.,

John L. Young was appointed guardian of Anna Effie Boyle February 23, 1903, and duly qualified. On March 24, 1903, he presented his petition to adopt his ward which was granted and a decree entered. Before his death, D. W. C. Boyle, the father of Anna Effie, signed a paper as follows: “If anything happens to me whatever is done with the children Effie is to go to Mr. John and Sadie Young.” Miss Boyle continued to live with Mr. Young until September, 1912. She then left and sought employment in a private family and when she became of age she cited him to file an account of the moneys he had received by reason of his guardianship. He thereupon filed his account in which he failed to charge himself with any interest on the sums in his hands and asked for a credit at the rate of $1 per week for the support of his ward during the period in which she lived with him as a member of his family. An inspection of the account shows that he received $26.67 in 1903, $133.34 in 1904 and later in the same year $235.55 and in 1907 the sum of $234.41 making a total of $629.97. The items of credit exclusive of the charge for maintenance and the commissions and attorney fees incident to filing the account amount to $162.57. The auditor .charged him interest for seven years upon an average balance of $200. Counsel for [384] the ward claims that he should have charged interest on a much larger sum and this is the basis of the first assignment of error. In Say’s Executors v. Barnes, 4 S. & R. 111, the auditor struck a balance at the end of every six months and charged the guardian simple interest on that. Tilghman, C. J., in delivering the opinion of the court in sustaining the account of the auditor says, “It does not seem to me, that this rule works either unjustly or severely, whether the case really was, that the money was used by the guardian, or negligently retained by him. How the fact was, we are ignorant. But it must not be forgot that no one but he who had the money, can show what became of it. It is objected that this rule is unjust because it might often happen, that good investments could not be obtained in the course of six months. The answer is fair. Show us that the money was really lying dead, and we give up the interest.” This as was pointed out in Dietterich v. Heft, 5 Pa. 87, did not contemplate the compounding of interest. The law makes guardians generally liable for interest on the money which comes into their hands and which they ought to put out: English v. Harvey, 2 Rawle 305. It is the duty of the guardian when he undertakes the trust to put the estate of his ward to the best uses and make interest thereon or show some satisfactory reason why he does not. This is the duty of every guardian and the courts hold him to a strict responsibility in its discharge: King v. Cloud, 7 Pa. 467. In the case before us the guardian has not told us what he did with the money. He evidently used it for his own ends and did not keep it separate and apart for his ward. All the information we have on that subject is in the question of the accountant’s attorney directed to the accountant, “Did you receive any other compensation except what you used in appropriating this money? A. — No.” The amount received in the first place would probably be too small to admit of investment except in a savings account, but after the receipt of the $235 from the administrator there [385] was a sum sufficient to invest and this was augmented in 1907 as noted above by an additional sum of $234.41. The old cases allowed him six months in which to make the investment although this is not any longer an invariable rule. He should also be allowed to have some part of the estate as an uninvested fund to provide for contingencies. There was no reason for striking an average. The balance remaining in the hands of the guardian from time to time could have been readily ascertained by the auditor, and although the account fails to give the time at which the various items of credit were expended, the vouchers themselves were presented at the audit and showed the dates of the several credits. We think interest on the .sum of $400 should be charged against the guardian for a period of seven years at six per cent, instead of on $200. This would increase the debit side of the account to the extent of $84. This is probably giving the guardian more than he should have. He should have shown definitely whether the funds were invested or not, and if the funds were uninvested given reasons why such a condition existed. As no such explanation was made we are left to do the best with the account as it is presented.

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Boyle's Estate, 67 Pa. Super. 381, 1917 Pa. Super. LEXIS 411 (Pa. Ct. App. 1917).

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