Opinion ID: 2336142
Heading Depth: 1
Heading Rank: 4

Heading: the ross trust

Text: Alexander H. Ross died on May 1, 1923, and by his will, dated May 28, 1921, a trust was created with the Fidelity Union Trust Company as trustee. The will contains no provision regarding the nature or types of investments to be made. With respect to the investment powers of the trustee the trial court held: Plaintiff, Fidelity Union Trust Company, as Trustee under the last will and testament of Alexander H. Ross, deceased, may invest the assets of said trust in such securities as are lawful by statute at the time the investment is made, and is not limited to such investments as were lawful by statute when the will was executed, or at the time of the death of the testator. Plaintiff, Fidelity Union Trust Company, as Trustee under the last will and testament of Alexander H. Ross, deceased, may invest in the legal securities permitted by N.J.S. 3 A :15-1, and, if it chooses, in limited legal investments, in accordance with the standard of care and not in excess of the percentage prescribed by the Prudent Man Investment Statute, N.J.S. 3 A :15-18, et seq.  Edith H. Ross Trowbridge, a life tenant, on her cross-appeal contends that the retrospective application of the Prudent Man Investment Statute to this trust is unconstitutional in that it deprives her of the vested right to have the principal of the trust invested as the testator intended, that the testator never intended to have the trust funds invested in securities other than those on the legal list, and that to permit investment under the Prudent Man Investment Statute is contrary to that intent. These contentions have already been disposed of herein adversely to this appellant. Clearly where the trust instrument is silent as to the investment powers of the trustee, it is presumed that the testator intended that the trustee should be empowered to make such investments as from time to time the Legislature might authorize. Accordingly, the trustee may here lawfully invest under the terms of the Prudent Man Investment Statute subject to the limitations imposed thereby.