Section taken from Massachusetts rule.

- When this statute was codified, in view of the older English cases and of such decisions as had then been made in America, one line of authority had to be selected as containing the correct rule. The codifiers in substance selected the Massachusetts rule. McHenry v. McHenry, 152 Ga. 105, 108 S.E. 522 (1921) (see O.C.G.A. § 44-6-84).

Specific devise of lands carries with it to devisee income, profit, or increase of legacy, from the date of the testator's death. Cheshire v. Keaton, 184 Ga. 29, 190 S.E. 579 (1937).

Extraordinary accumulation, including enhancement in value, goes to the remainderman. National Audubon Soc'y, Inc. v. Marshall, 424 F.2d 717 (5th Cir. 1970).

"Natural increase" and "extraordinary accumulation" construed.

- Words "natural increase" are used in antithesis to the subsequent words "extraordinary accumulation," and the words mean the ordinary accumulation of the property; that is, in case of stock, the ordinary increase of the stock's value by larger dividends declared, whereby it may be worth much more in the income of the holder from it, goes to the life tenant, but any extraordinary increase or accumulated outside property will go to the remaindermen. Millen v. Guerrard, 67 Ga. 284, 44 Am. St. R. 720 (1881).

Natural increase of stock includes dividends.

- Dividends, whether in cash, or bonds, or certificates of indebtedness, are the natural increase of stock, and not an accumulation of the corpus, nor is this affected by the fact that no dividends are declared on the stock for some time, and when dividends are declared the amount is unusually large. Therefore, such dividends belong to the life tenant, and not to the remaindermen. Millen v. Guerrard, 67 Ga. 284, 44 Am. St. R. 720 (1881).

As applied to corporate stock, "the natural increase" means dividends. Clearly it cannot mean the appreciation in the value of the corpus of the property. Jackson v. Maddox, 136 Ga. 31, 70 S.E. 865, 1912B Ann. Cas. 1216 (1911).

Extraordinary accumulation includes issue of new stock.

- Words, "such as issue of new stock upon the share of an incorporated or joint stock company" are a mere illustration of extraordinary accumulations. Millen v. Guerrard, 67 Ga. 284, 44 Am. St. R. 720 (1881).

If the issue of new stock is not an ordinary increase, it is not a natural increase. Millen v. Guerrard, 67 Ga. 284, 44 Am. St. R. 720 (1881); Jackson v. Maddox, 136 Ga. 31, 70 S.E. 865, 1912B Ann. Cas. 1216 (1911).

What is meant by an extraordinary accumulation of the corpus is illustrated by the words "such as an issue of new stock upon the shares of an incorporated or joint stock company." Thus, the codifiers distinctly selected the rule that the issue of new stock upon shares of a corporation constituted an extraordinary accumulation, and stated such an issue as being a typical case to illustrate the meaning of the words, "extraordinary accumulation," as used by the codifiers. Jackson v. Maddox, 136 Ga. 31, 70 S.E. 865, 1912B Ann. Cas. 1216 (1911).

Stock dividends.

- When this rule obtains, regardless of the time the profits out of which they are made accumulate or were earned, all stock dividends are to be considered as capital belonging to the remainderman, and all cash dividends are to be regarded as income belonging to the holder of the life term. Armstrong v. Merts, 202 Ga. 483, 43 S.E.2d 512 (1947).

Enhancement in value of sold and reinvested property.

- When a testator devised and bequeathed to one for life "the use, income, and profits" of certain real and personal property, with remainder over to others, with power in the executors to sell and reinvest in "income producing property or securities," subject to the same uses, and the property devised was sold and reinvested in property which enhanced in value, such enhancement in value became a part of the corpus of the estate and inured to the benefit of the remaindermen, and could not be collected by and for the use of the life tenant. Wood v. Davis, 168 Ga. 504, 148 S.E. 330 (1929).

Increase of animals.

- Under this statute, the natural increase of animals belonged to the life tenant, without any condition that when a life tenant takes the increase of animals of animals, there is a corresponding obligation to keep up the stock to its original number. Leonard v. Owen, 93 Ga. 678, 20 S.E. 65 (1894) (see O.C.G.A. § 44-6-84).

Executor cannot take natural increase.

- Executor has no right to sell the natural increase of the cattle and hogs, but they belonged absolutely to the widow, and passed, at her death, to her representatives. Leonard v. Owen, 93 Ga. 678, 20 S.E. 65 (1894).

Cited in White v. Rose, 73 F.2d 236 (5th Cir. 1934); Citizens & Southern Nat'l Bank v. Fleming, 181 Ga. 116, 181 S.E. 768 (1935); First Nat'l Bank v. Allen, 86 F. Supp. 918 (M.D. Ga. 1949); Hirsch v. Hirsch, 216 Ga. 379, 116 S.E.2d 611 (1960).

Am. Jur. 2d.

- 51 Am. Jur. 2d, Life Tenants and Remaindermen, §§ 104-120, 162-170, 201-232.

C.J.S.

- 18 C.J.S, Corporations, § 242 et seq. 31 C.J.S., Estates, §§ 41 et seq., 50 et seq., 161.

ALR.

- Rights and duties of life tenant with power to anticipate or enjoy principal, 2 A.L.R. 1243; 27 A.L.R. 1381; 69 A.L.R. 825; 114 A.L.R. 946.

Rights of life tenant and remainderman respectively as to discount at which securities are purchased, 48 A.L.R. 684; 101 A.L.R. 7; 131 A.L.R. 1426.

Right of estate of life beneficiary to income under a trust which confides to discretion of trustee the part of the income principal to be paid to him, 61 A.L.R. 677.

Duty of life tenant in respect of repairs as affected by amount of income, 101 A.L.R. 681.

Rights and duties of life tenant and remainderman (income and corpus) with respect to repairs and improvements, 128 A.L.R. 199; 175 A.L.R. 1434.

Right of estate of life beneficiary to income of trust for distribution, but not actually distributed, by trustee at time of life beneficiary's death, 141 A.L.R. 1466.

Right of life tenant under a grant or reservation of a life interest in oil and gas (as distinguished from the land) in res of oil and gas developed after the commencement of his interest, 150 A.L.R. 695.

Nontrust life estate expressly given for support and maintenance, as limited thereto, 26 A.L.R.2d 1207.

Right as between life beneficiaries and remaindermen, or successive life beneficiaries, in corporate dividends or distributions, 44 A.L.R.2d 1277.

Rights of life tenant and remaindermen inter se respecting increase, gains, and enhanced values of the estate, 76 A.L.R.2d 162.