Cox v. Sellers

Pearson, Vice-Chancellor:

The question reserved is whether the fact that the trustees held common as well as preferred stock of Edge Moor Iron Company should affect the allocation of the monies received in payment of the accrued dividends on the preferred stock. Summarizing the earlier opinion, the allocation of corporate distributions to trust corpus or income is determined by the intent of the settlor. In certain Delaware cases involving common stock, a rule has been stated that, in the absence of expressions to the contrary in the trust instrument, the intent is presumed *52that distributions…