In re the Estate of Davies

OPINION OF THE COURT

Renee R. Roth, S.

The trustee of this 1932 inter vivos trust seeks advice and direction on a novel question with respect to the allocation between principal and income of an extraordinary cash distribution about to be made to the trust from a subchapter S corporation.

The trust was created by an indenture dated May 21, 1932 for the income benefit of the grantor Valentine L. Davies. On *38his death in 1961, the principal of the trust was divided into two equal shares, one each for the life income benefit of Mr. Davies’ children, John and Judith. Upon the death of each child, the…