Heller v. Commissioner
United States Board of Tax Appeals
1. Petitioner and other relatives of his children contributed money and securities to custodian accounts for the children. The accounts were set up by the custodian bank by using petitioner's name as trustee. No declarations of trust were set up, and trusts were not intended. Petitioner managed and controlled the accounts, but withdrew no moneys therefrom, except in case of a few errors; none was loaned to anyone, and none used to maintain, educate, and support the children.
Read the full summary
1. Petitioner and other relatives of his children contributed money and securities to custodian accounts for the children. The accounts were set up by the custodian bank by using petitioner's name as trustee. No declarations of trust were set up, and trusts were not intended. Petitioner managed and controlled the accounts, but withdrew no moneys therefrom, except in case of a few errors; none was loaned to anyone, and none used to maintain, educate, and support the children. Held, the contributions were present gifts and not by way of trust. 2. Petitioner and his mother contributed separate…
1Opinion of the Court
*1028OPINION.
Disney:
Did respondent err in including in petitioner’s income the amounts of income earned in the three accounts set up for his children? The petitioner contends that the accounts contained only gifts, from him and other relatives of the children; respondent, that no present gifts were made or completed, but, in the alternative, that if made they were by way of trust, leaving the petitioner liable for the income thereof. Petitioner denies that any trust was intended or made, with the exception of the $10,000 in cash and bonds, contributed by his mother, and $1,000 by petitioner, to…
2Cases cited17 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. WoodSupreme Court of the United States · 1940
- EXECUTORS OF McDONOGH v. MURDOCHSupreme Court of the United States · 1854
- Lefrooth v. PrenticeCalifornia Supreme Court · 1927
- Towson v. MooreSupreme Court of the United States · 1899
12 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Rodney v. Comm'rUnited States Tax Court · 1969
- Hutchinson v. CommissionerUnited States Tax Court · 1967
- Cochran v. United StatesUnited States Court of Claims · 1945
- Fulk & Needham, Inc. v. United StatesDistrict Court, M.D. North Carolina · 1968
- Bouchard v. CommissionerUnited States Tax Court · 1960
10 more not listed; retrieve them via the Exa API.