In re the Judicial Settlement of the Final Account of the Chase Manhattan Bank

Pigott, Jr., P.J. (dissenting).

We respectfully dissent. In our view, the quarterly deposits from the charitable remainder annuity trust (CRAT) into the lifetime trust (LTT) between the time of the death of A. Charles Pioch (Charles), the settlor, and the death of Kathleen M. Pioch, his daughter, were additions to the principal of the LTT rather than income thereto.

In New York, the characterization of particular trust receipts as principal or income is subject to the “terms of the trust instrument” (EPTL 11-2.1 [a] [1] [A]). A trust instrument “is to be construed as written and the settlor’s…