TRUSTS-LIABILITY OF LIFE TENANT AND REMAINDERMAN FOR CARRYING CHARGES ON UNPRODUCTIVE PROPERTY

Authors

James D. Ritchie, University of Michigan Law School

Abstract

Testator put certain property, highly productive at the time of his death, in trust, income to his grandaughter for life, remainder over. Subsequently part of the property became unproductive, so that if the income from the rest should have fallen below three per cent and taxes were paid from income, the life tenant would have received nothing. The will authorized the trustee to sell when expedient; although using due diligence, the trustee had not yet sold. In a contest between the life tenant and remainderman, held, taxes accrued since the property became unproductive are payable from principal, not income. Harvard Trust Co. v. Duke, (Mass. 1939) 24 N. E. (2d) 144.

Recommended Citation

James D. Ritchie, TRUSTS-LIABILITY OF LIFE TENANT AND REMAINDERMAN FOR CARRYING CHARGES ON UNPRODUCTIVE PROPERTY, 38 Mich. L. Rev. 1366 (1940).
Available at: https://repository.law.umich.edu/mlr/vol38/iss8/35