275 Mass. 503 | Mass. | 1931
This is a petition for instructions brought by the trustee under the will of Josephine M. Chase. The first clause of the will is in the following terms: “First: I give, devise, and bequeath to Roscoe L. Chase, the sum of ten thousand dollars- in trust, nevertheless, to be invested and to pay over to my daughter, Laura J. Chase, all the net income, proceeds and profits to her sole use, during the term of her natural life. At her death said trust shall cease and be determined and said amount to revert to my estate, and distributed as hereinafter mentioned.” The residuary clause is in the following terms: “Third: The rest, residue and remainder of my said estate, I give, devise, and bequeath to my five children, Fred G. Chase, of Los Angeles, California, Edwin E. Chase of Denver, Colorado, Laura J. Chase of Lowell, Mass,, Roscoe L. Chase of North Adams, Mass., and Harold M. Chase of Wilmington, North Carolina, and to my grand-son Ernest W. Turner of Portland, Maine, to be divided equally among them, share and share alike.” On October 4, 1909, the date of the death of the testatrix, her five children and the grandson named in the will were living. At the date of the death of the daughter, Laura J. Chase, on April 27, 1930, three of the children as well as the grandchild named
The original trust fund of $10,000 was invested in various securities during the lifetime of the life tenant. ' Certain of these securities and rights to subscribe for new shares of stock were sold by the trustee during that time. These sales resulted in an aggregate gain» of $11,507.47; this amount was reinvested by the trustee in other securities which now are held by him. The total investment in or cost of the securities now held by the trustee is $21,372.25. The judge of the Probate Court entered a decree ordering the trustee to pay over to the executor of the'will of the life tenant all sums in excess of $10,000 of the principal of the trust, and to distribute the balance of the trust fund, one sixth to the estate of the said Laura J. Chase, one sixth to the estate of Fred G. Chase, and one sixth to each of the following respondents, Edwin E. Chase, Roscoe L. Chase, Harold M. Chase and Ernest W. Turner. All the respondents except the Union National Bank appealed from this decree,
Under the petition for instructions the only question now to be decided is whether the gains arising from the sales of securities or the proceeds of rights to subscribe for new stock constitute capital and belong to the remaindermen or constitute “net income, proceeds and profits” and belong to the estate of the life tenant.
There was a purpose manifest in the will and codicil to do more for Laura J. Chase than for any of the other beneficiaries, and this circumstance may be considered in interpreting the words used in the will, but it does not justify the court in assuming that the testatrix had an intention to benefit her not expressed in the will. The trustee was given a definite sum of money to be invested. There was no express authority to sell the securities in which it might first be invested and nothing to indicate that the testatrix had in mind the possibility that rights to subscribe to new
The word “income” may have different meanings de
The use of the words “net income, proceeds and profits” does not seem to indicate an intention that the trustee was expected to pay the beneficiary anything more than the net income of the trust property. They do not naturally mean that gains on the sale of the trust property or from the proceeds of the sale of rights were also to be paid to her. It is the income, proceeds and profits of the trust fund that are to be paid, not the gains in the fund from an' appreciation-in its value or those derived from reinvestment or from the sale of rights. We, therefore, are of opinion that these accretions were a part of the corpus of the trust estate to be divided among remaindermen.
Ordered accordingly.