Estate of Fabric v. Commissioner
United States Tax Court
Five days prior to her open-heart surgery, decedent created a foreign trust and entered into an annuity agreement with the trustee of the foreign trust. The trust was initially funded with $ 750. It was irrevocable, and decedent did not retain any control over it. The trust's beneficiaries were decedent's four sons and their lineal descendants. Pursuant to the annuity agreement, the foreign trustee agreed to pay decedent during her lifetime a fixed weekly amount.
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Five days prior to her open-heart surgery, decedent created a foreign trust and entered into an annuity agreement with the trustee of the foreign trust. The trust was initially funded with $ 750. It was irrevocable, and decedent did not retain any control over it. The trust's beneficiaries were decedent's four sons and their lineal descendants. Pursuant to the annuity agreement, the foreign trustee agreed to pay decedent during her lifetime a fixed weekly amount. The annuity amount was determined by use of the tables set forth in sec. 20.2031-10, Estate Tax Regs., and it was not dependent on…
1Opinion of the Court
Sterrett, Judge:
By notice of deficiency dated April 13, 1981, respondent determined a deficiency of $457,902 in the Federal estate tax of the Estate of Mollie P. Fabric. After concessions, the issues before us are: (1) Whether the decedent entered into a valid annuity or retained a life estate in the transferred properties, and (2) if a valid annuity existed, whether adequate and full consideration was given.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, is incorporated herein by this reference.
Mol…
2Cases cited18 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Estate of Daisy F. Christ, Deceased, Robert Johnson Christ v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1973
- McMurtry v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1953
- Huntington Nat'l Bank v. CommissionerUnited States Tax Court · 1949
13 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Weigl v. CommissionerUnited States Tax Court · 1985
- Estate of Andrew P. Carter, Through Its Dative Testamentary Eugene G. Taggert, Etc. v. United StatesCourt of Appeals for the Fifth Circuit · 1991
- Estate of Cullison v. CommissionerUnited States Tax Court · 1998
- Estate of McLendon v. CommissionerUnited States Tax Court · 1993
- Estate of Fabric v. CommissionerUnited States Tax Court · 1984
2 more not listed; retrieve them via the Exa API.