- 27 -
3.3 Source of Payments. All payments made
pursuant to the provisions of paragraph 3.1 or 3.2 * *
* shall be made from the assets of the Trust Estate
remaining after complying with the provisions of
Articles 4, 5, and 6 of this Trust Agreement and from
assets of the Trust Estate otherwise disposed of under
the provisions of paragraph 8.2 of Article 8 of this
Trust Agreement. If stock of Schwan’s Sales
Enterprises, Inc., must be used for any payment, non-
voting stock shall be used before voting stock. * * *
Given these directives, the principal difficulty with
petitioners’ argument is that it conflicts with the explicit
language of paragraph 2.3 above. That paragraph states that
“Upon the death of the Settlor, whatever then constitutes the
Trust Estate” (emphasis added) shall be subject to distribution
in accordance with the enumerated provisions. One such provision
is Article 3, which governs payment of taxes and expenses.
Hence, assets received after decedent’s date of death are not
covered by Article 3 and consequently are not among those which
decedent specified are to be used to pay tax and expense
obligations. Although petitioners reference an ability on the
part of the fiduciaries to allocate the bonus to principal under
the Revised Uniform Principal and Income Act, no amount of such
allocating can retroactively render the bonus then-existing
principal. The controlling testamentary instruments simply do
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011