Facts

• A solicitor was the trustee of a deceased estate
• He took money and transferred to his own bank account
• Solicitor purchased shares
• Relatives of the deceased estate tried to claim the shares
• Solicitor argued the shares were his because they were purchased from his own bank account

Issue

• Could the money be traced to the shares?

Held

• Proceeds from the sale of the shares was the estate’s
• It is a well settled principle that whatever transformation the property might undertake, the beneficiary can claim it as long as it is identifiable
• Since shares were the only thing in existence, the money could be traced
• Where private money has been mixed with trust money, it can be traced into an investment that is in control of the trustee.

-- Download Re Oatway [1903] 2 Ch 356 as PDF --

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