Rand v. Commissioner
United States Tax Court
The petitioner was both the income and remainder beneficiary, as well as one of the trustees, of a trust created in Missouri. Under an agreement between him and the other trustees, the trustees' fees were based in part upon a percentage of the value of a part of the corpus of the trust as of the time of distribution.
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The petitioner was both the income and remainder beneficiary, as well as one of the trustees, of a trust created in Missouri. Under an agreement between him and the other trustees, the trustees' fees were based in part upon a percentage of the value of a part of the corpus of the trust as of the time of distribution. Held, that under Missouri law and upon the particular facts presented, such trustees' fees were properly paid out of income of the trust, and served to reduce the distributable income of the trust which was taxable to the petitioner in the year of termination of the trust.
1Opinion of the Court
Atkins, Judge:
The respondent determined a deficiency in income tax for the calendar year 1953 in the amount of $28,828.68. The sole issue is whether the amount of $35,431.49, representing fees paid to trustees is to be taken into account in determining the amount of the income of the trust currently distributable to petitioner as the sole beneficiary of the trust.
FINDINGS OF FACT.
Most of the facts were stipulated, and the stipulation is incorporated herein by this reference.
Petitioners are husband and wife, residing in St. Louis, Missouri. The petitioner Eloise S. Eand is a petitioner herein…
2Cases cited12 opinions
- Freuler v. HelveringSupreme Court of the United States · 1934
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Fiske v. BuderCourt of Appeals for the Eighth Circuit · 1942
- In Re BuderSupreme Court of Missouri · 1949
- Carlisle v. CommissionerCourt of Appeals for the Sixth Circuit · 1948
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3Cited by1 opinion
- Rand v. CommissionerUnited States Tax Court · 1959