Canal Bank & Trust Co. v. Commissioner
United States Board of Tax Appeals
The decedent by will left the residuary portion of his estate in trust to two grandchildren, share and share alike, for a certain specified period. The will provided that during the period of the trust certain payments were to be made to the grandchildren and to other beneficiaries out of the income of the trust estate, or, in case it was not sufficient, then from the corpus.
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The decedent by will left the residuary portion of his estate in trust to two grandchildren, share and share alike, for a certain specified period. The will provided that during the period of the trust certain payments were to be made to the grandchildren and to other beneficiaries out of the income of the trust estate, or, in case it was not sufficient, then from the corpus. It was also provided that all income in excess of that required to make the payments to the beneficiaries and in excess of the carrying charges and other expenses of the trust estate should be invested and reinvested by…
1Opinion of the Court
*394OPINION.
Teammell :
The petitioners contend that the respondent’s determination is erroneous and in support thereof urge that the decedent by his will created three trusts as follows:(a) One for the corpus of the residue of his estate, out of which is to be paid from income the special annual legacies to William W. Rathborne of $5,000 and to Mrs. G. W. Rathborne of $30,000 and the general expense of the estate;(b) A trust for one-half of the remainder of the income to be held, disbursed and invested for the account of J. Cornelius Rathborne, this trust to come into operation on the 21st…
2Cases cited2 opinions
- Sparrow v. CommissionerUnited States Board of Tax Appeals · 1929
- Rauers v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by3 opinions
- Letts v. CommissionerUnited States Board of Tax Appeals · 1934
- McGinley v. CommissionerUnited States Board of Tax Appeals · 1934
- Canal Bank & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1934