Tilghman v. Frazer

87 A.2d 812 (1950)

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Nature of the Case

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Facts

There was a dispute over the allocation of income on property that was sold during administration of the estate. The life tenant wanted it to go to the life estate. The remaindermen wanted it to become part of the trust corpus. Under a decision made 58 years prior to this case, it was determined that it was to go to the corpus. A few jurisdictions have moved away from this Maryland rule and have adopted the Massachusetts rule which holds that the earnings upon a testator's property used to pay costs, administration, debts, and legacies derived during the course of administration, if not disposed of by the express terms of the will, are distributable to the life beneficiaries as income. Then the court found that Section 234 of the Restatement of Trusts had a different view of split allocation as listed in the illustration on page 990 Scoles 6th. The auditor followed the Restatement, and this dispute and appeal resulted.