Overview
Income vs. remainder, productive property, balanced investing. This module covers 11 of The Law of Trusts casebook, with real case holdings, key principles, and practical problems.
Educational content from the casebook "The Law of Trusts" — rebranded under AKASHIC INTELLIGENCE / LOVELOVINGLIFE. This is legal education, not legal advice. Trust law varies by state. Always consult a qualified estate-planning attorney.
Key Cases (2)
Pennsylvania Co. v. Gilmore
43 A.2d 667 · Issue: Duty of impartiality — tax-exempt bonds
Holding: The trustee must balance the interests of income beneficiaries and remaindermen. Selling tax-exempt bonds to increase corpus at the expense of income violates the duty of impartiality.
Sturgis v. Stinson
404 S.E.2d 56 · Issue: Duty of impartiality — unproductive property
Holding: If trust property produces no income or substantially less than the current rate of return, the trustee has a duty to sell it and reinvest. An unproductive asset must be converted.
Practice Problems (1)
Impartiality — Unproductive Asset
Scenario: A trust holds a farm that produces almost no income. The income beneficiary complains. Must the trustee sell?
Analysis: Yes — under the duty of impartiality, unproductive property must be sold and reinvested. The trustee has a duty to make trust property productive for the income beneficiary.
Deep Dive
Read the full chapter in The Law of Trusts, Made Plain