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Trusts - Investments - Participation Mortgages - Common Trust Funds, William F. Andersen

Michigan Law Review

A corporate trustee had operated a trust estate described by the court as "a joint trust fund." Mortgage investments were made in the name of the trustee and the individual estates were issued participation certificates. While not appearing on the public records, the trustee's files disclosed the interests of the beneficiaries. Because of the world-wide depression, losses were suffered and the beneficiaries of one such trust sought to surcharge the trustee for those losses. The trustee had acted in good faith and in accordance with accepted trust practices. Held, that this did not constitute a breach of trust, and …