NEW ENGLAND MERCHANTS NATIONAL BANK v. CONVERSE


373 Mass. 639 (1977)

369 N.E.2d 982

NEW ENGLAND MERCHANTS NATIONAL BANK & others, trustees, vs. ELISHA EDMANDS CONVERSE & others (and two companion cases).

Supreme Judicial Court of Massachusetts, Suffolk.

November 16, 1977.


Attorney(s) appearing for the Case

A. James Casner (John E. Rogerson & Joseph R. Watkins with him) for the New England Merchants National Bank & others.

Jerry M. Brown (William H. Bentley with him) for Stephen W. Howe & another, guardians ad litem.

Present: HENNESSEY, C.J., QUIRICO, BRAUCHER, KAPLAN, & WILKINS, JJ.


BRAUCHER, J.

Guardians ad litem are here objecting to trustees' accounts because no adjustment was made between income and principal to reimburse principal for a portion of Federal capital gains taxes paid out of principal. Pursuant to Federal law certain capital expenses were deducted in determining the net income taxable to the income beneficiaries; if those expenses had been available as deductions in determining the capital gains taxes, lesser taxes would have...

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