New York Court of Appeals
In the Matter of the Judicial Settlement of the Account of Thomas Rogers and William Cauldwell, as Trustees, Under…
November 28, 1899161 N.Y. 108
Summary
The Court of Appeals affirmed the Surrogate's Court order that the stock received by the trustees from the sale of the corporation's plant and the first liquidation dividend constitute capital of the trusts, while the remaining accumulated assets are profits payable to the life tenants. The decision rests on the characterization of corporate assets in liquidation as capital versus income.