Estate of Stewart v. Commissioner
United States Tax Court
Decedent established two inter vivos trusts with a reserved life estate, two secondary life estates, and ultimate remainders to named charities. The sole corporate trustee was given discretionary power to allocate receipts and expenditures between principal and income and to invest in wasting assets without provision for a reserve or sinking fund.
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Decedent established two inter vivos trusts with a reserved life estate, two secondary life estates, and ultimate remainders to named charities. The sole corporate trustee was given discretionary power to allocate receipts and expenditures between principal and income and to invest in wasting assets without provision for a reserve or sinking fund. Held, the discretionary powers did not constitute a power of indirect invasion in favor of the secondary life beneficiaries and the charitable remainders are deductible under sec. 2055, I.R.C. 1954.
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined a deficiency in petitioner’s estate tax in the amount of $56,308.82. The sole issue for our determination is whether the remainder interests in two trusts established by the decedent qualify for a charitable deduction pursuant to section 20551 because of the investment and management discretion vested in the trustee.
All of the facts are stipulated and are found accordingly.
Petitioner is the executor of the Estate of Lillie MacMunn Stewart, deceased, who died on May 6, 1964. His legal residence at the time of filing the petition herein was…
2Cases cited21 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- Commissioner v. Estate of SternbergerSupreme Court of the United States · 1955
- Carrier v. . CarrierNew York Court of Appeals · 1919
- Blodget v. Delaney, CollectorCourt of Appeals for the First Circuit · 1953
16 more not listed; retrieve them via the Exa API.
3Cited by25 opinions
- Estate of Ford v. CommissionerUnited States Tax Court · 1969
- Estate of Lillie MacMunn Stewart, Deceased, W. Alan Henderson v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1971
- Allen v. CommissionerUnited States Tax Court · 1976
- Bankers Trust Company v. United StatesDistrict Court, S.D. New York · 1970
- Estate of Speer v. CommissionerUnited States Tax Court · 1972
20 more not listed; retrieve them via the Exa API.