Veech's Estate

Citations

• 74 Pa. Super. 373
• 1920 Pa. Super. LEXIS 156

Syllabus

<p>Trust and trustees — Principal and income — Stoch dividend — • Might to subscribe for new shares — Sale of rights.</p> <p>Tbe right to subscribe for new shares at par, upon an increase of the capital stock of the corporation, which is an incident of the ownership of the stock, does not belong as a privilege to the life tenant, but such an increment must be treated as capital and be added to the trust for the benefit of the remainderman. This is equally the rule whether the trustee subscribes for the new stock for the benefit of the trust, or sells the right to subscribe for a valuable consideration. In either event the increase goes to the corpus.</p> <p>Where a trustee, upon the increase of the capital stock of the' corporation, sells the right to subscribe to such shares at par, the money derived from such sale goes to the corpus of the estate.</p>