TRUSTS-DISPOSITION BETWEEN LIFE TENANT AND REMAINDERMAN OF PROCEEDS OF BONDS BOUGHT AT A PREMIUM OR DISCOUNT

Authors

Abstract

Trustees under a will purchased two lots of bonds at a premium, one of which had a call date and price; a callable preferred stock at a price above the call price; and bonds at a discount. The trustees amortized the premium bonds to the maturity date in one case and to the call date in the other. The stock was amortized over a period of five years to the call price. The life tenant claimed the right to be paid discount accumulated on the bonds bought at a discount. Held, that the action of the trustees as to amortization of both lots of premium bonds was proper; that there was no basis for amortization on stock, though callable, as on bonds; that accumulation on bonds bought at a discount could not be paid to the life tenant. Old Colony Trust Co. v. Comstock, (Mass. 1935) 195 N. E. 389.

Recommended Citation

TRUSTS-DISPOSITION BETWEEN LIFE TENANT AND REMAINDERMAN OF PROCEEDS OF BONDS BOUGHT AT A PREMIUM OR DISCOUNT, 34 Mich. L. Rev. 448 (1936).
Available at: https://repository.law.umich.edu/mlr/vol34/iss3/28