Reed v. Browne (295 N.Y. 184, 1946)

Desmond, "J.

Additional New York State income taxes were assessed against Mathilda A. Stier, appellant’s testatrix, because, according to the State, Mrs. Stier omitted certain taxable income from her returns for 1937, 1938 and 1939. After a hearing, the State Tax Commission confirmed the assessments and the commission’s determination was, on appeal, unanimously confirmed by the Appellate Division. We granted leave to appeal to this court.

This is an income tax case but the answer to its problem is found in the law of trusts. The income in question came from the estate of Mrs. Stier’s father, who died in 1902. The investments of the estate are in both real and personal property. Read as of the date of his death, the father’s will left his residuary estate to his only children, Mrs. Stier and her sister, as trustees to pay the income thereof to themselves “ during