Opinion
June 1, 1960.
September 26, 1960.
Trusts — Future interests — Vested or contingent — Income accumulations — Act of April 18, 1853, P. L. 503, § 9.
Where it appeared that settlor created a trust for the benefit of his minor son and gave the trustees discretionary powers concerning the distribution or accumulation of income, and provided for the distribution of all accumulated income to the beneficiary "when he attains the age of 25 years, or in the event of the death of the settlor before he attains the age of 21 years, then, when he attains said age of 21 years", and provided for the termination of the trust and payment of the principal to the beneficiary at age 35, with the alternate provision that in the event of his death prior to age 35 ". . . this trust shall terminate and the corpus or principal and any accumulated income therein, shall be paid and distributed . . ." to the beneficiary's issue or in default thereof to the settlor's other children; and it further appeared that the beneficiary and the settlor died together two months after the beneficiary's 22d birthday, it was Held that (1) settlor intended his son's interest in accumulated income to be contingent upon his attaining the age of 25 and the son did not have any vested interest in the accumulated income at the time of his death; (2) the Act of April 18, 1853, P. L. 503, § 9, as amended, does not prohibit income accumulations which are limited to either the minority of the beneficiary or the lifetime of the settlor; and (3) the policy prohibiting the capitalization of income which has been accumulated during the beneficiary's minority and is distributable to him when he attains his majority is not applicable to income which has accumulated during a settlor's lifetime limitation.
Argued June 1, 1960. Before JONES, C. J., BELL, MUSMANNO, JONES, COHEN, BOK and EAGEN, JJ.
Appeal, No. 64, Jan. T., 1960, from decree of Orphans' Court of Montgomery County, No. 56182, in re estate of Ian Ward Wheelock, deceased. Decree affirmed.
Same case in court below: 21 Pa. D. C.2d 753.
Proceedings on appeal from inheritance tax appraisement.
Adjudication filed sustaining appeal and order entered, opinion by TAXIS, JR., P. J. Commonwealth appealed.
Irvin Stander, Special Assistant Attorney General, with him Edward J. Ozorowski, Special Assistant Attorney General, Ralph S. Snyder, Assistant Attorney General, and Anne X. Alpern, Attorney General, for Commonwealth, appellant.
Cuthbert H. Latta, with him Louis D. Stefan, Cormac J. Malloy, and Barnes, Dechert, Price, Myers Rhoads, and High, Swartz, Childs Roberts, for appellees.
Decree affirmed on opinion of Judge TAXIS, 21 Pa. D. C.2d 753. Each party to pay its own costs.