In re the Estate of Holloway

John D. Bennett, S.

This is a motion by the guardian ad litem to reargue the decision (reported in 67 Mise 2d 132) that the trustees were not required to charge income with income taxes payable by four residuary trusts as the result of principal distributions to those trusts. Those distributions were “ deemed ” income under the 1954 Internal Revenue Code policy decision to treat all distributions, whether of corpus or income, as taxable income to the recipients to the extent of the estate’s distributable net income (Internal Revenue Code, §§ 661, 662).

The complexion of this matter has altered…