Brock Estate

Dissenting Opinion by

Me. Justice Roberts:

I am unable to agree that the Principal and Income Act, of 19471 mandates that capital gains2 distributions of regulated investment companies or mutual funds be allocated to principal. My consideration of the problem leads me to conclude that a more reasonable construction of that Act would dictate an allocation to income.

Section 5(1) of the Principal and Income Act of 1947 provides that “where the trustee shall have the option of receiving a dividend, either in cash or in the shares of the distributing corporation, it shall be considered as a cash…