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Trusts - Construction - Distinction Between "Stock Dividends" And "Stock Spit" For Allocation Purposes, Roger W. Findley S.Ed.
Trusts - Construction - Distinction Between "Stock Dividends" And "Stock Spit" For Allocation Purposes, Roger W. Findley S.Ed.
Michigan Law Review
In 1918 a settlor created two identical trusts, the corpus of each consisting of 300 shares of General Electric no-par common stock. The income was to go to life beneficiaries, and at their deaths the principal was to revert to the settlor or his residuary estate. The trust instrument directed the trustee to transfer to the settlor or his executor, "free of all trusts hereby created, any and all stock dividends .... " In 1954 the corpus of each trust included 1200 shares of G.E. no-par stock with a stated value of $6.25 per share, there having been two stock …