Vose v. Commissioner
United States Tax Court
Decedent in 1935 created an irrevocable trust, naming himself and two others as trustees. The trust instrument provided that income was payable to him for life, and gave him power, by deed or will, to appoint persons to receive income and principal after his death. It also provided for the execution and delivery by the trustees to the decedent at his request of so-called "certificates of indebtedness" payable to such persons as he should nominate.
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Decedent in 1935 created an irrevocable trust, naming himself and two others as trustees. The trust instrument provided that income was payable to him for life, and gave him power, by deed or will, to appoint persons to receive income and principal after his death. It also provided for the execution and delivery by the trustees to the decedent at his request of so-called "certificates of indebtedness" payable to such persons as he should nominate. Certificates stated that trust was "indebted" to holder in specified sum to be paid out of corpus upon its termination with "interest" at rate of 6…
1Opinion of the Court
OPINION.
HaReon, Judge:
The petitioners concede that the net value of the corpus of the Vose Family Trust at the time of decedent’s death is includible in his gross estate under the provisions of section 811 (c), Internal Revenue Code,2 because of the reservation by him in the trust instrument of the income of the trust for life. They contend, however, that the net value of the trust estate to be included in the gross estate is the fair market value of the trust corpus less the amount of legal encumbrances against it as of the date of decedent’s death; that the so-called “certificates of…
2Cases cited7 opinions
- Helvering v. HallockSupreme Court of the United States · 1940
- Milliken v. United StatesSupreme Court of the United States · 1931
- Commissioner v. Estate of ChurchSupreme Court of the United States · 1949
- Estate of Spiegel v. CommissionerSupreme Court of the United States · 1949
- Fidelity-Philadelphia Trust Co. v. RothensiesSupreme Court of the United States · 1945
2 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Vose v. CommissionerUnited States Tax Court · 1953
- Vose v. CommissionerUnited States Tax Court · 1950