Childs v. Commissioner
United States Board of Tax Appeals
1. Where the wife of a grantor of a trust was given the current income for life and a limited testamentary power of appointment over corpus and income, she had an interest in the corpus substantially adverse to that of the grantor, and capital gains of the trust are not taxable to the grantor under section 166 of the Revenue Act of 1936. 2. Where, under such trust, only income from capital gains could go to the grantor, and this income only by the voluntary testamentary act…
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1. Where the wife of a grantor of a trust was given the current income for life and a limited testamentary power of appointment over corpus and income, she had an interest in the corpus substantially adverse to that of the grantor, and capital gains of the trust are not taxable to the grantor under section 166 of the Revenue Act of 1936. 2. Where, under such trust, only income from capital gains could go to the grantor, and this income only by the voluntary testamentary act of the wife and if she predeceased the grantor, such gains are not taxable to the grantor under section 167 of the same…
1Opinion of the Court
ESTATE OF WILLIAM CHILDS, DECEASED, MORRISTOWN TRUST COMPANY, EXECUTOR, AND VICTORIA CHILDS, PETITIONERS, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Childs v. Commissioner
Docket No. 102578.
United States Board of Tax Appeals
44 B.T.A. 1191; 1941 BTA LEXIS 1219;
August 6, 1941, Promulgated
1. Where the wife of a grantor of a trust was given the current income for life and a limited testamentary power of appointment over corpus and income, she had an interest in the corpus substantially adverse to that of the grantor, and capital gains of the trust are not taxable to the grantor under section…
2Cases cited7 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Shiverick v. CommissionerUnited States Board of Tax Appeals · 1938
- Daybill v. LucasNew Jersey Court of Chancery · 1936
- Terhune v. CommissionerUnited States Board of Tax Appeals · 1939
- Estate of Fish v. CommissionerUnited States Board of Tax Appeals · 1940
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