Inman v. Commissioner
United States Tax Court
1. In 1940, the decedent created a trust for a 10-year term under which his three nephews were the trustees, income beneficiaries, and remaindermen. In the event that a nephew died during the term of the trust, the property would pass under the nephew's limited power of appointment by will to relatives or to his distributees. The only power retained by decedent was in conjunction with all the nephews to terminate the trust and accelerate the remainders.
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1. In 1940, the decedent created a trust for a 10-year term under which his three nephews were the trustees, income beneficiaries, and remaindermen. In the event that a nephew died during the term of the trust, the property would pass under the nephew's limited power of appointment by will to relatives or to his distributees. The only power retained by decedent was in conjunction with all the nephews to terminate the trust and accelerate the remainders. Held, that decedent had a power to terminate under section 811(d)(1) of the Internal Revenue Code and the trust is includible in his gross…
1Opinion of the Court
OPINION.
Black, Judge:
The issue raised here is whether decedent retained a power of termination under section 811 (d) (1) of the Internal Revenue Code so that the trust is includible in his gross estate and what value, if any, should be included.
The decedent created a trust on December 27, 1940, for a 10-year term, naming his three nephews as trustees. The trust was divided in three equal parts and each nephew was given the immediate and continuing right to receive all the income and the right to receive the principal upon the expiration of the trust on December 27, 1950. If the nephew should…
2Cases cited8 opinions
- Commissioner v. Estate of HolmesSupreme Court of the United States · 1946
- City Bank Farmers Trust Co. v. McGowanSupreme Court of the United States · 1945
- Hurd v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1947
- Hurd v. CommissionerUnited States Tax Court · 1946
- Thorp v. CommissionerUnited States Tax Court · 1946
3 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- John J. Round, Jr., Executors v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1964
- Estate of Gilchrist v. CommissionerUnited States Tax Court · 1977
- Noel v. CommissionerUnited States Tax Court · 1962
- Horner v. United StatesUnited States Court of Claims · 1973
- Estate of Gilchrist v. CommissionerUnited States Tax Court · 1977
2 more not listed; retrieve them via the Exa API.