Estate of Hazelton v. Commissioner
United States Tax Court
Decedent, the principal beneficiary in a trust created by his father in 1935, was not subject to a gift tax in 1951 when the trustees of the 1935 trust transferred a portion of the trust assets to a new trust in which the decedent was again the principal beneficiary, but with the difference that in the new trust the decedent's spouse was entitled, at the absolute discretion of the trustees, to a distribution of principal and income for her welfare, while under the old trust…
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Decedent, the principal beneficiary in a trust created by his father in 1935, was not subject to a gift tax in 1951 when the trustees of the 1935 trust transferred a portion of the trust assets to a new trust in which the decedent was again the principal beneficiary, but with the difference that in the new trust the decedent's spouse was entitled, at the absolute discretion of the trustees, to a distribution of principal and income for her welfare, while under the old trust such distribution to the spouse was limited to one-third of the trust income.
1Opinion of the Court
Mtjlroney, Judge:
Tbe respondent determined a deficiency in gift tax against tbe decedent for tbe year 1951 in tbe amount of $8,846.27.
The question in the case is, did the decedent make a transfer in 1951 taxable under section 1000 of tbe Internal Revenue Code of 1989, and if he did, what is the net value of tbe transfer subject to the gift tax? Tbe case was submitted without trial under Rule 30, upon a stipulation of facts and the depositions of two witnesses. The stipulated facts are found accordingly.
FINDINGS OF FACT.
On August 17, 1935, Frank P. Hazelton created trust No. 1157 by an…
2Cases cited1 opinion
- Lahti v. CommissionerUnited States Tax Court · 1946
3Cited by1 opinion
- Estate of Hazelton v. CommissionerUnited States Tax Court · 1957