Sunderland v. Commissioner
United States Tax Court
In 1934 petitioner's husband created two trusts, making the children income beneficiaries for life. The trust indentures provide that the income is to be paid to or applied to the use of the children and that the trustee may pay the income to petitioner during the minority of the children. The trustee is not obligated to see that proper application is made of the income paid to petitioner.
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In 1934 petitioner's husband created two trusts, making the children income beneficiaries for life. The trust indentures provide that the income is to be paid to or applied to the use of the children and that the trustee may pay the income to petitioner during the minority of the children. The trustee is not obligated to see that proper application is made of the income paid to petitioner. Prior to 1940 petitioner delivered securities of her own to the trustee of the trusts created by the husband in 1934. She directed the trustee to hold the securities under those trusts. In the taxable year…
1DissentArundell, J.
I find myself in disagreement with the conclusion reached by the majority. We are dealing here with taxable income from two identical trusts created by petitioner’s husband for the benefit of their minor children. These trusts were created in 1984 and are irrevocable. Paragraph No. 1 of each trust instrument states that the trustee is to pay or apply the net income for the use of the particular child. The father has been taxed on so much of this income as was derived from the securities placed in the trust by him and this action, undoubtedly, was taken on the ground that this money served to…
2Cases cited3 opinions
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Lembeck v. LembeckNew Jersey Court of Chancery · 1907
- Plummer v. GibsonNew Jersey Court of Chancery · 1900