Swigert v. Straub

In 1955, plaintiff created five irrevocable trusts, one for each of his five grandchildren. Other than the names of the beneficiaries, the terms of the trusts are identical. Plaintiff made gifts to the trusts in 1955, 1956, 1957, 1958, 1963, 1964 and 1965, and claimed an annual gift tax exclusion for each trust in each of those years. All grandchildren were minors during this period.

The State Treasurer notified plaintiff of gift tax deficiencies for the gifts made between 1955 and 1964. The Department of Eevenue, which succeeded *77the State Treasurer as administrator of the gift tax, determined…