Estate of Zeile ( 1886 )

decided May 14, 1886.]

Annuity—Protection of Residuary Legatees.—When a Testator gives his brother a specified sum per annum, to be paid during his lifetime from the interest of money to be invested by the executors, and directs the principal sum and the overplus interest to be paid to the residuary legatees when the annuity ceases, the investment of the fund should be made with due regard to the interests of such legatees.

Annuity—Investment of Fund.—When a Testator Bequeaths to his brother a specified sum per annum for life, payable quarterly, the principal sum and the overplus interest thereon to be divided among the residuary legatees when the annuity ceases, the court, in order to provide for the required income, will direct the retention of city real property belonging to the estate and yielding an income slightly in excess of the annuity, rather then direct an investment in United States bonds.

Annuity—Interest and Income.—Where a Testator Directs His Executors to place funds “at interest” to provide for the payment of an annuity, the investment may nevertheless be made in real estate, if such a course seems preferable to the loaning of money.