RIEBEL'S ESTATE

Fiduciaries — Guardians — Retention of nonlegal investments of incompetent — Approval of court — Advice of counsel — Acts of predecessor — Filing of account — Conclusiveness — Acts of June 13, 1836, P. L. 589; May 28, 1907, P. L. 292, and April 15, 1915, P. L. 124.

1. A guardian for an incompetent person who, in the exercise of good faith and common prudence, under the advice of a lawyer, and acting under the authority of the court, retains nonlegal investments made by the incompetent, is not liable to surcharge for any loss arising thereby. [146-53]

2. The Act of June 13, 1836, P. L. 589, which provides that a committee in lunacy may, under the direction of the court of common pleas having jurisdiction, invest the money of the incompetent in such stocks, or upon such security, as shall be approved by the court, and if such investment be made bona fide the committee shall not be liable for any loss that may arise thereby, is not repealed, nor is the Act of May 28, 1907, P. L. 292, amended by the Act of April 15, 1915, P. L. 124, which provides that guardians appointed under it shall have precisely the same power and be subject to the same duties as a committee in lunacy affected by section 22 of article III of the Constitution, which provides that no act of General Assembly shall authorize the investment of trust funds by executors, administrators, guardians or other trustees, in the bonds or stock of any private corporation. [147]

3. A guardian is not liable for the acts of his predecessor, nor beyond the amount of property which actually was received by him, except in case of gross negligence. [151-2]

4. Where the account of a guardian of an incompetent is filed and confirmed after proper legal notice to the next of kin as required by the Act of 1907, as amended by the Act of 1915, such confirmation is final and conclusive as to any act of the guardian prior to the confirmation. [150]

Argued January 9, 1936.