Case Name: Matter of the Estate of Joseph H. Snyder, Deceased
Court: New York Surrogate's Court
Jurisdiction: New York
Decision Date: 1901-07
Citations: 35 Misc. 588
Docket Number: 
Parties: Matter of the Estate of Joseph H. Snyder, Deceased.
Judges: 
Reporter: New York Miscellaneous Reports
Volume: 35
Pages: 588–589

Head Matter:
Matter of the Estate of Joseph H. Snyder, Deceased.
(Surrogate’s Court, New York County,
July, 1901.)
Trust — Invalid accumulation — Of income not absolutely payable to a minor at majority — To pay mortgages — L. 1896, ch. 547, §§ 51, 76; 1897, ch. 417, § 4.
Accumulation of the income of a legacy to a minor, where the income is not directed to be paid him at majority but is required in a certain contingency to be held in trust for him for life and thereafter to be distributed to other persons, is forbidden by statute and the illegal accumulation, when not otherwise disposed of, passes to the parties entitled to the next eventual interest or estate in the fund ¡which produced it.
Income of a trust cannot lawfully be directed to be applied to the payment of mortgages on the testator’s realty, as this constitutes an illegal accumulation, which also passes to the owner of the next eventual estate.
Proceedings upon, the judicial settlement of the accounts of executors.
Deyo, Duer & Bauerdorf (Robert E. Deyo, of counsel), for executors.
Jordan J. Rollins, special guardian of infant remaindermen.

Opinion:
Fitzgerald, S.
The testator, by the second and seventh clauses of his will, directed other payments to be made out of the income of his estate, besides the one-half thereof given to the widow and the legacy in question. The provisions of the will with respect to this legacy, when considered in connection with the direction for the payments referred to, and the extent of the income yielded by the estate, show, it seems to me, that the testator intended that the principal of the legacy should be made up and provided from accumulated income. As this income was not absolutely directed to be paid to the primary legatee, who was a minor, upon his attaining majority, but was required, in a certain contingency, to be held in trust for his benefit for life, and to be distributed among other persons after his death, the legacy is void, as it involves an accumulation of income for a purpose prohibited by the statute. Laws of 1896, chap. 547, art. 2, § 51; id., art. 3, § 76; Laws of 1897; chap. 417, art. 1, § 4. For the same reason, the provision for the application of income to the payment of the mortgages upon the real estate left by the testator is void. Hascall v. King, 162 N. Y. 134. The income so illegally required to be accumulated, not being otherwise disposed of, goes, pursuant to the statute, to the parties presumptively entitled to the next eventual interest or estate in the fund which produced it. Cochrane v. Schell, 140 N. Y. 516. These persons are those among whom the principal of the estate left by' the. decedent is directed to be divided upon the death of his widow.
Decreed accordingly.