In re the Judicial Settlement of the Intermediate Account of Proceedings of the National City Bank of New York & Pennock

On this appeal from a decree of the Surrogate’s Court the sole issue presented is whether renewal commissions from premiums paid after a testator’s death on insurance policies written by him during his life are entirely principal or partly principal and partly income of a residuary testamentary trust. The learned surrogate in an opinion (Matter of Pennock, 172 Misc. 10) held that all such commissions were wholly capital. The testator’s widow, life beneficiary of the residuary trust, appeals claiming there should be an apportionment of such commissions. The trustee takes no position.

For many…