First National Bank v. Perkins Institute

176 N.E. 532 (1931)

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Nature of the Case

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Facts

The executor of Amelia's will petitioned for instructions. The will left her nephew all of her stock in Standard Oil. The executor sought instructions for the disposition of $7,000 in the principal amount of the debentures which the nephew claims have passed to him under the will. At the time the will was executed, she had 110 shares of seven percent preferred stock callable at $115 per share. To meet this call, debentures were sold by Standard and the holders of the stock were given a preferential right to subscribe to these debentures. She sent her shares and got debentures in return, but because it was oversubscribed, she only transferred 62 shares of stock and sold the rest. At the time of her death, she had $7,000 worth of the debentures. There was no stock in the estate when she died. The nephew claimed the debentures. The trial court ruled against the nephew; the stock had been adeemed.