281 A.D. 905 | N.Y. App. Div. | 1953
In a proceeding pursuant to article 79 of the Civil Practice Act to settle accounts of the trustee of four inter vivos trusts, an income beneficiary of one trust objected to an account insofar as it deducted from real estate income a sum for depreciation reserve. The real estate was owned by corporations of which the trustee of the four trusts held all the shares of stock. After trial, the objection was overruled and the accounts of the trustee and the corporations were approved. The objeetant appeals from the decree entered thereon insofar as it settled the account of the trustee of the trust of which she is an income beneficiary. Decree, insofar as appeal is taken, affirmed, with costs to all parties filing briefs, payable out of the trust estate. Ho opinion. Adel, Acting P. J., Wenzel, MacCrate and Schmidt, JJ., concur; Beldoek, J., dissents, votes to modify the decree by granting appellant her prorata share of the income represented by the reserve set aside for depreciation, and, as thus modified, to affirm, with the following memorandum: On December 29, 1931, the four individuals who held all the outstanding stock of a corporation executed four reciprocal inter vivos trust agreements and turned over to the trustee all the stock of the corporation as the trust property. Prior to the creation of the trusts, the only reserve for depreciation which the corporation had set up in twenty-five years of business operation was $14,000. For the next six years until 1937, there was additional depreciation of about $15,000. In 1937 the corporation became the owner