United States Trust Co. v. Jones

Mr. Presiding Justice Ktley

delivered the opinion of the court.

This is an action in chancery by a trustee for construction of the trust instrument with respect to the payment of capital gains tax. The chancellor construed the instrument so as to charge income, and not the corpus, with the tax. The income beneficiaries, referred to herein as the beneficiaries, have appealed.

The plaintiff trustee is a New York corporation authorized to do business in Illinois. In December 1916 it was made trustee under an agreement with David B. Jones of Chicago, Illinois. Under the agreement, Jones conveyed to…