Stern v. Commissioner
United States Tax Court
As an integral part of petitioners' financial and estate plan, two foreign situs trusts were nominally created by a Canadian attorney (the Hylton Trust) and petitioner Vera Stern's father (the Florcken Trust). The trustee of both trusts was a foreign bank. Shortly thereafter, petitioners transferred substantial blocks of Teledyne stock to these trusts in exchange for lifetime annuities.
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As an integral part of petitioners' financial and estate plan, two foreign situs trusts were nominally created by a Canadian attorney (the Hylton Trust) and petitioner Vera Stern's father (the Florcken Trust). The trustee of both trusts was a foreign bank. Shortly thereafter, petitioners transferred substantial blocks of Teledyne stock to these trusts in exchange for lifetime annuities. The annuities were computed using the fair market value of the Teledyne stock and imputing an interest factor. The annuity payments were chargeable solely against the assets owned by the respective trusts. Due…
1Opinion of the Court
Hall, Judge:
In his notice of deficiency, respondent determined deficiencies in petitioners’ income tax as follows:
Year Deficiency
1971. $1,551,956
1972. 688,147
1973. 55,647
By amended answers, respondent redetermined the deficiencies1 as follows:
Year Deficiency
1971....,. $1,017,890
1972. 1,407,734
1973. 94,405
Due to concessions by the parties,2 the remaining issue for decision is whether certain transactions between petitioners and two foreign situs trusts should be treated as sales in exchange for annuity payments, or as transfers in trust with petitioners retaining the requisite interests under…
2Cases cited20 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Bixby v. CommissionerUnited States Tax Court · 1972
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- United States v. ByrumSupreme Court of the United States · 1972
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3Cited by20 opinions
- Zmuda v. CommissionerUnited States Tax Court · 1982
- Kanter v. CommissionerCourt of Appeals for the Seventh Circuit · 2009
- Esther Lafargue v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1982
- Sidney B. Stern and Vera L. Stern v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1984
- Stern v. United StatesDistrict Court, D. Nevada · 1983
15 more not listed; retrieve them via the Exa API.