Trust No. 3 v. Commissioner
United States Tax Court
Parents transferred property in trust for the benefit of their minor children, directing trustees to pay income and principal as might be necessary for education, comfort, and support of the beneficiaries, and to accumulate amount not so needed until beneficiaries reached age 25. The beneficiaries or their guardians were given power to terminate the trust in whole or in part at any time. No guardians were appointed for the children.
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Parents transferred property in trust for the benefit of their minor children, directing trustees to pay income and principal as might be necessary for education, comfort, and support of the beneficiaries, and to accumulate amount not so needed until beneficiaries reached age 25. The beneficiaries or their guardians were given power to terminate the trust in whole or in part at any time. No guardians were appointed for the children. All the income was accumulated by the trustees during the years 1955 and 1956. The trust took deductions in the full amount of the income as income distributable…
1Opinion of the Court
OPINION.
Atkins, Judge:
The respondent determined deficiencies in income tax of the petitioner trust for the calendar years 1955 and 1956 in the respective amounts of $15,826.32 and $13,372.69. The issues are whether the income is to be considered that of the trust or of the beneficiaries, and if that of the trust, whether any of the income was distributable or distributed, entitling the trust to deductions.
All of the facts are stipulated and are incorporated herein by this reference.
On March 4, 1954, C. E. and Margaret F. Brehm, husband and wife, executed a written instrument entitled “Trust…
2Cases cited15 opinions
- Corliss v. BowersSupreme Court of the United States · 1930
- McDonald v. City of Spring ValleyIllinois Supreme Court · 1918
- Mallinckrodt v. CommissionerUnited States Tax Court · 1943
- Mallinckrodt v. NunanCourt of Appeals for the Eighth Circuit · 1945
- Walgreen Co. v. Industrial CommissionIllinois Supreme Court · 1926
10 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Trust No. 3 v. CommissionerUnited States Tax Court · 1960