Matter of Estate of Krebs

HOFFMAN, Judge:

The issues on appeal are (1) whether the settlor evidenced an intention to accumulate the income in one trust and (2) whether his purpose for a second trust has become impractical or impossible of fulfillment. For the reasons set forth below, we reverse in part and affirm in part.

On March 7, 1964, the settlor created an inter vivos trust known as the “J. William Krebs Trust No. 2,” (Trust No. 2) which authorized appellee, the Bank of Hanover and Trust Company, as trustee to “pay over and distribute the income and principal” in the amount of $5,000 annually (beginning January,…