Appeals, Nos. 52, 53, 54, 56, 57, 58, 59, 60, 61, 62, 63 and 64, March T., 1960, from decrees of Orphans' Court of Allegheny County, Nos. 854, 855 and 856 of 1949, in re deeds of trust of Isaac W. Frank and deed of trust of Tinnie K. Frank. Decree in No. 854 affirmed; decrees in Nos. 855 and 856 reversed.
John G. Buchanan and Louis Caplan, with them Robert F. Patton, Charles C. MacLean, Jr., and Norman Dorsen, of the New Eyork Bar, and Buchanan, Ingersoll, Rodewald, Kyle & Buerger, and Dewey, Ballantine, Bushby, Palmer & Wood, for appellants.
Abe R. Cohen, with him Richard S. Crone, and Crone and Cohen, for appellee.
Before Jones, C.j., Bell, Musmanno, Jones, Cohen, Bok and Eagen, JJ.
OPINION BY MR. JUSTICE BENJAMIN R. JONES.
These twelve appeals*fn1 present, in the main, two issues: (1) whether individual trustees, under the provisions of two inter vivos trust deeds, have the power to appoint an out-of-state fiduciary as a successor
corporate trustee; (2) whether the court below abused its discretion in refusing to appoint an out-of-state fiduciary as a successor corporate trustee under three inter vivos trust deeds?
There are three inter vivos trust deeds herein involved: (a) an inter vivos trust deed dated January 3, 1927 wherein the settlor was Isaac W. Frank and the original trustees were the said Isaac W. Frank and the Bank of Pittsburgh, National Association (herein termed Pittsburgh Bank); (b) two inter vivos trust deeds dated May 21, 1930 in one of which Isaac Frank was the settlor and in the other of which his wife, Tinnie K. Frank, was the settlor and the original trustees in both deeds were William K. Frank, Robert J. Frank and S. J. Anathan (sons and son-in-law, respectively of the settlors) and the Pittsburgh Bank. When the three trusts were created the settlors and individual trustees all lived in Pittsburgh.
Isaac W. Frank died on December 1, 1930 and he was succeeded in the 1927 trust by the same individual trustees named in the 1930 trust deeds. The Pittsburgh Bank became insolvent and, on December 1, 1931, its Receiver notified the individual trustees in all three estates that the Pittsburgh Bank was resigning as corporate trustee in all three trusts. Eventually Bessie F. Anathan (settlors' daughter) succeeded to the position of trustee originally held by her husband, S. J. Anathan. The management of the trusts since December 1931 has been in the hands of the individual trustees, particularly William K. Frank,*fn2 no corporate trustee in succession to the Pittsburgh Bank ever having been appointed.
From 1927 to October 4, 1935 all trust assets had their situs in Pittsburgh where the trust office was also located. In 1930 Frank Securities Corporation, a Delaware corporation, was formed and all the trust assets were transferred to that corporation with the trusts receiving, proportionately to each trust interest, stock in that corporation. On October 4, 1935 a Delaware partnership known as Frandel Partnership was created and all the stock in the corporation was turned over by the trusts to that partnership, each trust receiving, in return, its fractional interest in the partnership. At that time all the corporation, partnership and trust assets were transferred from Pittsburgh to Wilmington, Delaware, the trust assets being placed in the Wilmington Trust Company which held them in nominee registration. Both the corporation and partnership were later dissolved and their assets transferred to the three trusts. In January, 1957 all the trust assets were transferred to the Fiduciary Trust Company of New York (herein termed Fiduciary) which placed them in its vault in nominee registration. Pursuant to an order of the Orphans' Court of ...