Estate of Reynolds

OPINION OF THE COURT

ROBERTS, Justice.

This appeal from a final decree of the Court of Common Pleas of Luzerne County, Orphans’ Court Division, presents the question whether 15,667 shares of stock received by the trustee of a testamentary trust as part of a 3-for-2 stock distribution should be treated as income, as contended by appellants, or allocated to principal. The orphans’ court held the distribution to be controlled by the Principal and Income Act, 20 Pa.C.S. § 8105(a), which provides:

“Corporate distributions made to a trustee in the shares of the distributing corporation, however…