- 30 -
Ct. 1959). Clearly, an income beneficiary's right to the
income from assets arises under State law at the testator's
date of death. Therefore, it is appropriate to gauge the
adequacy of the flow of income from the assets by the value
of the assets at the date of death.
In support of the Government's argument, respondent
cites a single commentator, George C. Barclay, who states
that:
Originally inventory value in the case of
testamentary trusts was equated with the value
used for estate tax purposes. However, this
meant that a trustee to whom the assets were
delivered at a much later date was being charged
with values which might bear no relation to the
values at the time he received the assets. Thus,
inventory value is now defined simply as the cost
of property or its value when made subject to the
trust.
Barclay, "The Principal and Income Act", 33 Brook. L. Rev.
489, 498 (1967). Mr. Barclay's commentary does
not directly address the issue at hand. In fact, this
statement seems directed toward protecting fiduciaries who
receive assets after their values have fallen below their
original inventory values. Further, Mr. Barclay's
statement offers no support to respondent's claim that the
inventory value of the Modern Globe stock should be
determined as of the date when the trusts "should have been
funded".
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