Vander Weele v. Commissioner
United States Tax Court
Petitioner created a trust, of which she was the sole life beneficiary, consisting of stocks, securities, and a contingent remainder interest in a trust created by the will of her grandfather. The petitioner was to receive the trust income for life or until the receipt of the remainder interest in her grandfather's estate.
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Petitioner created a trust, of which she was the sole life beneficiary, consisting of stocks, securities, and a contingent remainder interest in a trust created by the will of her grandfather. The petitioner was to receive the trust income for life or until the receipt of the remainder interest in her grandfather's estate. Thereafter, the trustees were empowered to pay petitioner so much of the income of the trust as they in their discretion deemed desirable and ample for her comfortable well-being and enjoyment. In the event the income of the trust was insufficient for that purpose, the…
1Opinion of the Court
OPINION.
Withey, Judge:
The issue presented for our decision is the question whether by means of the creation of the trust on March 25, 1950, and the transfer thereto without consideration of petitioner’s stocks, bonds, and the contingent remainder in the assets of the testamentary trust created by her grandfather, petitioner made a completed gift within the meaning of section 1000 of the Internal Revenue Code of 1939.1
The respondent has taken the position that the transfer of property in trust by petitioner constituted a taxable gift of the entire trust fund unreduced by an amount equal to the…
2Cases cited2 opinions
- Gilkey v. GilkeyMichigan Supreme Court · 1910
- Gramm v. CommissionerUnited States Tax Court · 1951
3Cited by9 opinions
- Estate of Paxton v. CommissionerUnited States Tax Court · 1986
- Hambleton v. CommissionerUnited States Tax Court · 1973
- Outwin v. CommissionerUnited States Tax Court · 1981
- Estate of Holtz v. CommissionerUnited States Tax Court · 1962
- Estate of Paxton v. CommissionerUnited States Tax Court · 1986
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