Stephens v. Lewistown Trust Co.

OPINION OF THE COURT

ROBERTS, Justice.

We reaffirm that, in the absence of the settlor’s clear demonstration of intent to the contrary, income beneficiaries are entitled to distribution of trust income in excess of minimum specified payments.

In 1951, settlor John Stephens executed a will providing for a residuary trust for the benefit of his four children, Mrs. Ruth E. Knepp, J. Paul Stephens, Donald L. Stephens and Ralph G. Stephens. Subsequently Donald died. On September 27, 1956, settlor executed a codicil by which he directed that under no circumstances would Donald’s widow or issue receive…