Matter of Estate of Dawson

The opinion of the court was delivered by

CLIFFORD, J.

This appeal poses the issue of the correct interpretation and application of the term “stock dividend” as used in the testator’s will. The narrow question is whether trustees of a testamentary trust should allocate eight different stock distributions to income or to principal. The will provided that in administering the trust, the trustees should allocate stock dividends to income and allocate stock splits to principal. The will did not define those terms, however.

In three prior intermediate accountings, the Chancery Division, Probate Part,…