Grosvenor v. Commissioner
United States Board of Tax Appeals
Where property is transferred in trust for the benefit of a minor child of the grantor until such child attains the age of 21 years, or until her death if she dies a minor, and the income during the life of the trust is payable to the grantor's wife, "to be expended by her for the support, maintenance, and education" of the minor, the income of the trust is not taxable as part of the income of the grantor under the Revenue Act of 1928. Francis J. Stokes,28 B.T.A. 1243,…
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Where property is transferred in trust for the benefit of a minor child of the grantor until such child attains the age of 21 years, or until her death if she dies a minor, and the income during the life of the trust is payable to the grantor's wife, "to be expended by her for the support, maintenance, and education" of the minor, the income of the trust is not taxable as part of the income of the grantor under the Revenue Act of 1928. Francis J. Stokes,28 B.T.A. 1243, followed. Edmund O. Schweitzer,30 B.T.A. 155, overruled.
1Opinion of the Court
OPINION.
Murdock :
The Commissioner determined a deficiency of $4,455.44 in the petitioner’s income tax for 1929. The facts have been stipulated or admitted. The petitioner assigns as error the action of the Commissioner in adding to income as reported the income of two trusts created for the benefit of two minor daughters. Each trust was to terminate when the child named as beneficiary became 21 years of age or at her death if she died a minor. The property was then to go to the petitioner or his estate. During the continuation of each trust the income was to be paid to the petitioner’s wife…
2Cases cited2 opinions
- Burnet v. WellsSupreme Court of the United States · 1933
- Reinecke v. SmithSupreme Court of the United States · 1933
3Cited by1 opinion
- Grosvenor v. CommissionerUnited States Board of Tax Appeals · 1934