Stockstrom v. Commissioner
United States Tax Court
Petitioner created 10 irrevocable long-term trusts and constituted himself trustee in each, with broad administrative powers. The primary beneficiaries of the trusts were his children and grandchildren. In those trusts in which a child was beneficiary the petitioner had the right in his discretion to distribute the income in amounts deemed proper to the child or to the child's children.
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Petitioner created 10 irrevocable long-term trusts and constituted himself trustee in each, with broad administrative powers. The primary beneficiaries of the trusts were his children and grandchildren. In those trusts in which a child was beneficiary the petitioner had the right in his discretion to distribute the income in amounts deemed proper to the child or to the child's children. In those trusts in which a grandchild was beneficiary the petitioner had the right in his discretion to either pay the trust income to the beneficiary or to accumulate it. Held, under the facts, the income of…
1Opinion of the Court
OPINION.
KeRN, Judge:
The apparent purpose of the trusts involved in this case was to allocate the income from property owned by the donor-trustee-taxpayer to members of his immediate family, viz., his three children and seven grandchildren, and at the same time to effect a retention by the donor during his life of control over that property equivalent for all practical purposes to the control which he held before the trust gifts, and a control over the amount of income available to the beneficiaries of the trusts thus established by him. It is stipulated that petitioner “at all times material”…
2Cases cited3 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Rentschler v. CommissionerUnited States Tax Court · 1943
- Marshall v. CommissionerUnited States Tax Court · 1943
3Cited by23 opinions
- Morgan v. CommissionerUnited States Tax Court · 1945
- Hall v. CommissionerCourt of Appeals for the Tenth Circuit · 1945
- Stockstrom v. CommissionerUnited States Tax Court · 1944
- Welch v. CommissionerUnited States Tax Court · 1947
- Backus v. CommissionerUnited States Tax Court · 1946
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