Brody v. Commissioner
United States Tax Court
The petitioners, by trust agreement, provided for payment of the income derived from the trust corpus to the beneficiaries for life or until 1967, and provided for the distribution of the corpus to the beneficiaries on that date. 1. Held, the gifts of corpus were future interests for which no exclusion under section 1003 (b) (3) of the Internal Revenue Code is permissible. 2. Held, further, where the trust instrument permitted the trustees to accelerate distribution of…
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The petitioners, by trust agreement, provided for payment of the income derived from the trust corpus to the beneficiaries for life or until 1967, and provided for the distribution of the corpus to the beneficiaries on that date. 1. Held, the gifts of corpus were future interests for which no exclusion under section 1003 (b) (3) of the Internal Revenue Code is permissible. 2. Held, further, where the trust instrument permitted the trustees to accelerate distribution of corpus at any time, the present interests of income are incapable of valuation and no exclusion is permissible under section…
1Opinion of the Court
OPINION.
Hill, Judge:
The petitioners in 1947 and again in 1948 transferred certain real property in trust for the benefit of their six children and ten grandchildren, thus creating 16 separate trusts; one for each beneficiary. Each trust provided for the payment of its net income to the beneficiary for life until February 21, 1967, when the trust was to terminate and the corpus was to be distributed to the income beneficiary unless the trust had been previously terminated pursuant to an exercise of the unlimited discretion to accelerate distribution of the corpus given to the trustees.
The…
2Cases cited11 opinions
- United States v. PelzerSupreme Court of the United States · 1941
- Kieckhefer v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1951
- Fisher v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1942
- Commissioner of Internal Revenue v. SharpCourt of Appeals for the Ninth Circuit · 1946
- Evans v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1952
6 more not listed; retrieve them via the Exa API.
3Cited by28 opinions
- Thorrez v. CommissionerUnited States Tax Court · 1958
- La Fortune v. CommissionerUnited States Tax Court · 1957
- Jones v. CommissionerUnited States Tax Court · 1957
- Blasdel v. CommissionerUnited States Tax Court · 1972
- Hutchinson v. CommissionerUnited States Tax Court · 1967
23 more not listed; retrieve them via the Exa API.