Loretto Lohman Roberts v. Franklin H. Roberts

On November 7, 1945, George W. Roberts, a resident of Montana, purchased 375.094 shares of Investors Stock Fund, Inc., a Nevada corporation, licensed to do business and sell its securities in Montana. These shares were evidenced by certificaté No. 1738 dated November 13, 1945. The certificate recited that George W. Roberts, as trustee for Franklin H. Roberts, was the owner of the shares mentioned in the certificate.

At the time of his purchase of the stock, George W. Roberts executed under the heading of “Declaration of Trust— Revocable”, an instrument reciting that he had directed that this certificate be issued in his name as trustee for Franklin H. Roberts as beneficiary, and declaring and setting forth the terms and conditions upon which he should hold said stock in trust and any additional stock resulting from any reinvestment of cash dividends upon the original shares.

Among the stated terms were that during his lifetime all cash dividends' on the stock were to be paid to George W. Roberts individually for his own account, and that all additional stock purchased under an authorized reinvestment of cash dividends should be made a part of and subject to the trust. It recited…