Budd v. Commissioner
United States Tax Court
1. Held, limitation of trustees' power to invade corpus for the benefit of income beneficiary to "the event of sickness, accident, misfortune or other emergency," or to cases in which income available to the income beneficiary from all sources is "insufficient to provide for the proper care, support and medical attention of such beneficiary during the period of any illness or other incapacity * * * or * * * for the suitable support, education and maintenance of any such…
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1. Held, limitation of trustees' power to invade corpus for the benefit of income beneficiary to "the event of sickness, accident, misfortune or other emergency," or to cases in which income available to the income beneficiary from all sources is "insufficient to provide for the proper care, support and medical attention of such beneficiary during the period of any illness or other incapacity * * * or * * * for the suitable support, education and maintenance of any such beneficiary" places a determinable external standard on the "sole" or "uncontrolled" discretion granted the trustees;…
1Opinion of the Court
OPINION
Raum, Judge:
Respondent determined a deficiency in estate tax of $191,842. The question presented is whether certain powers retained by decedent over two trusts created by him required inclusion of the value of the trust property in his gross estate.1 The facts have been stipulated.
Ralph Budd, the decedent, died testate on February 2, 1962, a resident of California.
On March 21,1932, decedent, then a resident of Minnesota, created a revocable trust, transferring certain securities and cash to himself and his wife, Georgia Budd, as trustees. Under the terms of the trust agreement, the net…
2Cases cited20 opinions
- Ingraham v. IngrahamIllinois Supreme Court · 1897
- Industrial Trust Co. v. Commissioner of Internal Rev.Court of Appeals for the First Circuit · 1947
- Jennings v. SmithCourt of Appeals for the Second Circuit · 1947
- Pardee v. CommissionerUnited States Tax Court · 1967
- Estate of Budlong v. CommissionerUnited States Tax Court · 1946
15 more not listed; retrieve them via the Exa API.
3Cited by29 opinions
- United States v. ByrumSupreme Court of the United States · 1972
- Estate of Ford v. CommissionerUnited States Tax Court · 1969
- Old Colony Trust Company, of the Estate of John H. Cunningham v. United StatesCourt of Appeals for the First Circuit · 1970
- Estate of Stewart v. CommissionerUnited States Tax Court · 1969
- Fruehauf v. CommissionerUnited States Tax Court · 1968
24 more not listed; retrieve them via the Exa API.