Hanover Bank v. Commissioner
United States Tax Court
Held, a valid trust was created by the settlors by an agreement dated October 19, 1914, and the amounts distributed to petitioner Frances M. Strong by the trustee pursuant to the trust in 1953, 1954, 1955, 1956, and 1958 are taxable income to petitioners Frances and Seymour Strong. The amounts distributed by the trustee in 1954, 1955, and 1956 are deductible under section 661, I.R.C. 1954.
1Opinion of the Court
OPINION
Black, Judge:
Petitioners Strong contend that the agreement between Frances’ mother, father, paternal grandmother, and the predecessor of the present trustee, entered into on October 19,1914, did not create a trust fund for the benefit of Frances and that the agreement only provided for the creation of a collateral mortgage security arrangement for the benefit of Frances’ mother in lieu of dower. Petitioners Strong further contend that since the amounts received by Frances’ mother were in lieu of dower the amounts therefore are incidents of inherited property to Frances and her mother.
We…
2Cases cited3 opinions
- Lyeth v. HoeySupreme Court of the United States · 1938
- Chase Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1939
- Israel v. CommissionerUnited States Tax Court · 1948
3Cited by1 opinion
- Hanover Bank v. CommissionerUnited States Tax Court · 1963